JBTMarel Corp (JBTM)

The analysis of JBTMarel Corp's days of inventory on hand (DOH) over the specified period reveals a pattern of fluctuations that merits detailed consideration. As of December 31, 2020, the company’s DOH was 60.31 days, indicating a relatively efficient inventory management and quicker turnover of inventory assets. However, through subsequent periods, there was a notable increase, reaching a peak of 91.02 days by December 31, 2021. This substantial rise suggests that the company experienced a slowdown in inventory turnover, potentially due to increased inventory levels, slower sales, or strategic inventory accumulation during that period.

Following the peak in 2021, the DOH maintained a high level in 2022 at 90.83 days, signifying that the trend of slower inventory turnover persisted. However, in the next financial year, a positive trend emerged with a reduction to 80.84 days by the end of 2023. This decrease indicates an improvement in inventory efficiency, possibly reflecting effective inventory management, increased sales velocity, or strategic adjustments to inventory holdings.

The trend continued into 2024, with DOH further decreasing to 78.09 days. This consistent decline over two successive years suggests an ongoing effort to optimize inventory levels and enhance turnover rates. Overall, the data demonstrate that JBTMarel Corp initially experienced a period of increased inventory holding, followed by a gradual but sustained reduction, indicating potential operational improvements or changes in sales dynamics. The observed trajectory toward shorter inventory cycles in recent periods may enhance liquidity and reduce carrying costs, aligning with best practices for inventory management.

Peer comparison

Dec 31, 2024