Knowles Cor (KN)
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 | 3.51 | 3.76 | 2.36 | 2.09 | 3.07 | 2.04 | 2.23 | 2.07 | 2.72 | 2.42 | 2.64 | 2.85 | 3.32 | 3.38 | 3.21 | 3.57 | 3.77 | 3.02 | 3.05 | 3.23 | |
| DOH | days | 103.91 | 97.06 | 154.98 | 174.44 | 118.71 | 178.95 | 163.61 | 176.00 | 134.41 | 150.52 | 138.41 | 128.26 | 109.87 | 107.96 | 113.80 | 102.18 | 96.75 | 120.76 | 119.68 | 113.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.51
= 103.91
Based on the data provided for Knowles Cor's days of inventory on hand (DOH) over the past few years, there are notable fluctuations in the company's inventory management efficiency.
1. From March 31, 2020, to December 31, 2021, there seems to be a general trend of fluctuating DOH figures, with a peak value of 150.52 days on September 30, 2022, and a low of 96.75 days on December 31, 2020. These wide fluctuations suggest potential issues with inventory management, as excessively high DOH values can tie up capital in inventory and lead to obsolescence risks, while very low values may indicate stockouts and lost sales opportunities.
2. The DOH values show some signs of improvement from the first quarter of 2023 towards the end of 2024. The trend indicates a reduction in the number of days required to sell off the inventory on hand, which could be a positive sign of enhanced inventory turnover efficiency.
3. However, the sudden spike in DOH to 178.95 days on September 30, 2023, followed by another high of 174.44 days on March 31, 2024, raises concerns about potential disruptions in the company's supply chain or excess inventory accumulation during these periods.
4. The significant variability in DOH figures should prompt further investigation into the company's inventory management practices, supply chain dynamics, demand forecasting accuracy, and production lead times to identify and address any underlying issues impacting inventory turnover efficiency.
In conclusion, the fluctuating trend in Knowles Cor's days of inventory on hand over the analyzed period suggests a need for closer monitoring and potential optimization of inventory management strategies to achieve a more stable and efficient balance between inventory levels and sales requirements.
Peer comparison
Dec 31, 2024