Ingersoll Rand Inc (IR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.99 | 3.50 | 3.70 | 3.58 | 2.47 | |
| DOH | days | 91.49 | 104.23 | 98.54 | 101.86 | 148.01 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.99
= 91.49
The days of inventory on hand (DOH) for Ingersoll-Rand Inc has shown a downward trend over the past five years, indicating an improvement in the management of inventory levels. In 2019, the company had 119.08 days of inventory on hand, which decreased to 91.49 days by the end of 2023.
This decline in DOH suggests that the company has been more effective in managing its inventory turnover, resulting in a shorter time period in which inventory is held before being sold. This may lead to lower carrying costs, reduced risk of obsolescence, and improved liquidity.
Overall, the decreasing trend in DOH for Ingersoll-Rand Inc reflects positively on the company's inventory management practices and efficiency in optimizing its working capital.
Peer comparison
Dec 31, 2023