Ingersoll Rand Inc (IR)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover 3.85 3.46 3.43 3.76 3.99 3.62 3.51 3.34 3.50 3.49 3.36 3.45 3.70 3.49 3.62 3.40 3.68 1.95 1.61 1.23
DOH days 94.73 105.50 106.50 97.13 91.49 100.75 104.04 109.42 104.23 104.67 108.77 105.70 98.54 104.72 100.92 107.29 99.07 187.16 226.05 297.45

December 31, 2024 calculation

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

Ingersoll Rand Inc's days of inventory on hand (DOH) has shown fluctuations over the past few years. The company's DOH stood at 297.45 days as of March 31, 2020, indicating that on average, it took the company almost a year to sell its inventory. Over the subsequent quarters, the DOH decreased significantly, reaching its lowest point at 91.49 days as of December 31, 2023. This decline suggests that Ingersoll Rand improved its inventory management efficiency during this period.

However, the DOH started to increase again from March 31, 2024, indicating a reversal in the trend of inventory turnover efficiency. As of December 31, 2024, the DOH stood at 94.73 days, still higher than the low point in 2023. This increase could suggest potential issues such as slower sales, excess inventory, or challenges in managing inventory levels effectively.

Overall, while Ingersoll Rand has shown improvement in inventory turnover efficiency in the past, the recent uptick in DOH warrants attention to ensure optimal inventory management practices are maintained to support liquidity and profitability.