Enpro Industries (NPO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.35 | 4.44 | 4.45 | 4.41 | 5.02 | |
| DOH | days | 83.89 | 82.29 | 82.03 | 82.81 | 72.72 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.35
= 83.89
Based on the data provided, Enpro Industries' Days of Inventory on Hand (DOH) has shown a slight increasing trend from 72.72 days as of December 31, 2020, to 83.89 days as of December 31, 2024. This indicates that, on average, it took the company longer to sell its inventory over the five-year period.
A higher DOH could suggest potential issues such as overstocking, slow-moving inventory, or declining sales. It could also tie up working capital in unsold inventory and increase storage costs. Enpro Industries may need to reevaluate its inventory management strategies to optimize its holding of inventory levels and improve efficiency in selling its products.
Further analysis would be beneficial to determine the specific factors contributing to the increase in DOH and to develop appropriate strategies for inventory management to enhance the company's operational performance and profitability.