3M Company (MMM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.83 | 3.58 | 3.77 | 3.92 | 4.15 | |
| DOH | days | 95.26 | 101.95 | 96.81 | 93.18 | 88.05 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.83
= 95.26
The days of inventory on hand (DOH) ratio for 3M Co. has shown a fluctuating trend over the past five years. In 2023, the company's DOH was 95.26 days, a decrease from the previous year's 101.95 days. This indicates that 3M Co. was able to manage its inventory more efficiently in 2023 compared to 2022. However, when compared to 2021 and 2020, the DOH in 2023 was slightly higher, suggesting a potential buildup of inventory.
Overall, the DOH ratio for 3M Co. has been relatively stable over the years, with fluctuations within a reasonable range. A high DOH ratio can indicate slow-moving inventory or potential obsolescence issues, while a low DOH ratio may suggest stockouts or lost sales opportunities. Further analysis of the company's inventory management practices and industry benchmarks would provide deeper insights into the efficiency of 3M Co.'s inventory turnover process.
Peer comparison
Dec 31, 2023