nVent Electric PLC (NVT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.13 | 6.96 | 6.42 | 8.22 | 7.54 | |
| DOH | days | 59.50 | 52.41 | 56.85 | 44.38 | 48.42 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.13
= 59.50
The days of inventory on hand (DOH) for nVent Electric plc have exhibited some fluctuations over the past five years. In 2023, the company held inventory for an average of 83.83 days, which was an increase from the previous year's level of 69.83 days. This upward trend in DOH may indicate that nVent Electric plc is carrying more inventory relative to its sales, which could tie up more capital and potentially lead to higher carrying costs.
Comparing 2023 to 2021 and 2019, where the DOH figures were 77.29 days and 66.74 days respectively, there appears to be an overall increasing trend in the number of days of inventory on hand. This could suggest potential inefficiencies in inventory management or challenges in accurately forecasting demand for nVent Electric's products.
It would be prudent for nVent Electric plc to assess its inventory management practices to ensure optimal levels of inventory that strike a balance between meeting customer demand and minimizing carrying costs. Additionally, monitoring and potentially optimizing the supply chain processes could help in reducing the days of inventory on hand and improving overall operational efficiency.
Peer comparison
Dec 31, 2023