Ingersoll Rand Inc (IR)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 3.85 3.99 3.50 3.70 3.58
DOH days 94.73 91.49 104.23 98.54 101.86

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.85
= 94.73

In analyzing the days of inventory on hand (DOH) for Ingersoll Rand Inc over the past five years, we observe the following trend:

- As of December 31, 2020, the company had 101.86 days of inventory on hand, indicating that it took approximately 101.86 days to sell its average inventory.
- By December 31, 2021, the DOH decreased slightly to 98.54 days, suggesting a more efficient management of inventory.
- However, by December 31, 2022, the DOH increased to 104.23 days, which may signal potential issues with inventory management or a build-up of excess inventory.
- The trend reversed positively by December 31, 2023, as the DOH decreased significantly to 91.49 days, indicating a more streamlined inventory turnover process.
- As of December 31, 2024, the DOH remained relatively low at 94.73 days, continuing the downward trend seen in the previous year.

Overall, the fluctuations in Ingersoll Rand Inc's days of inventory on hand over the years suggest a varying balance between inventory levels and sales activity, with efforts to optimize inventory management evident in the recent improvements in turnover efficiency. Continued monitoring and analysis of this metric will be important for evaluating the company's inventory practices and operational performance.