Envista Holdings Corp (NVST)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.03 | 8.35 | 7.85 | 7.59 | 7.69 | 8.01 | 8.06 | 8.12 | 8.52 | 9.47 | 8.22 | 8.78 | 11.72 | 7.03 | ||||
| DOH | days | 36.40 | 43.71 | 46.47 | 48.09 | 47.49 | 45.57 | 45.30 | 44.95 | 42.82 | 38.55 | 44.39 | 41.57 | 31.13 | 51.92 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.03
= 36.40
The days of inventory on hand (DOH) for Envista Holdings Corp has shown a declining trend over the past few quarters, indicating improved efficiency in managing inventory levels. The DOH decreased from 107.29 days in Q3 2022 to 83.89 days in Q4 2023, a significant drop of over 20 days. This suggests that the company has been more effective in turning over its inventory and converting it into sales.
However, it is important to note that the DOH increased slightly in Q3 and Q2 2023 compared to the previous quarters, which could indicate a temporary slowdown in inventory management. Overall, the decreasing trend in DOH showcases the company's efforts to optimize inventory levels and improve liquidity by reducing excess inventory holding costs.
An optimal DOH varies by industry and business model, so it is important for Envista Holdings Corp to compare its current DOH with industry benchmarks to assess its performance relative to peers. Additionally, continuous monitoring of inventory management practices and trends in DOH can help the company make strategic decisions to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2023