Itron Inc (ITRI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.47 | 7.06 | 10.85 | 10.58 | 9.51 | |
| DOH | days | 56.42 | 51.70 | 33.63 | 34.49 | 38.37 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.47
= 56.42
The days of inventory on hand (DOH) for Itron Inc. has shown fluctuations over the past five years. In 2023, the company had an increase in DOH to 70.94 days compared to the previous year's 65.55 days. This could indicate that Itron Inc. is taking longer to sell its inventory or may have excess inventory on hand, which can tie up working capital and increase holding costs.
When compared to 2021 and 2020, where the DOH was 42.97 days and 42.37 days respectively, the increase in DOH in 2023 is significant. It suggests a potential inefficiency in managing inventory, which could lead to higher storage costs and potentially mark down prices to sell excess inventory.
However, it is worth noting that in 2019, the DOH was 47.53 days, which was higher than the current year. This might indicate that the company has made improvements in managing inventory since then, but the recent increase in DOH warrants further investigation to ensure optimal inventory management practices are in place.
Peer comparison
Dec 31, 2023