John Bean Technologies Corporation (JBT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.96 | 7.24 | 7.20 | 7.62 | 5.50 | |
| DOH | days | 186.68 | 50.42 | 50.72 | 47.87 | 66.36 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.96
= 186.68
The days of inventory on hand (DOH) for John Bean Technologies Corp have shown a fluctuating trend over the past five years. The company's DOH increased from 66.36 days in 2019 to 80.84 days in 2023, indicating that it is taking longer to sell its inventory. This could suggest potential issues with inventory management efficiency or changes in demand for its products.
The peak DOH of 80.84 days in 2023 may raise concerns about inventory turnover and cash flow, as a higher number of days implies that inventory is sitting idle for a longer period before being sold. On the other hand, the decrease in DOH from 2021 to 2022 could indicate improvements in inventory management or a more effective sales strategy.
It is essential for John Bean Technologies Corp to closely monitor its inventory levels and assess the reasons behind the fluctuations in DOH to optimize working capital utilization and enhance overall operational performance. Further analysis of inventory management practices and market conditions may provide insights into the sustainability and competitiveness of the company's business operations.
Peer comparison
Dec 31, 2023