NOV Inc. (NOV)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.14	3.26	3.57	4.02	3.47
DOH	days	116.31	112.10	102.28	90.86	105.04

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.14
= 116.31

The days of inventory on hand (DOH) for NOV Inc has shown a fluctuating trend over the past five years. It increased from 105.04 days in 2019 to 116.31 days in 2023, with a peak in 2023. This indicates that NOV Inc held inventory for an average of approximately 116 days at the end of 2023, up from about 105 days in 2019.

A higher DOH figure may suggest that NOV Inc is carrying excess inventory, which could tie up working capital and lead to potential obsolescence or storage costs. On the other hand, a lower DOH figure may indicate efficient inventory management but could also imply stockouts or insufficient inventory levels to meet demand.

The trend in NOV Inc's DOH should be further analyzed in conjunction with other financial metrics and industry benchmarks to assess the effectiveness of the company's inventory management practices and its overall operational efficiency.