nVent Electric PLC (NVT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.43 | 5.49 | 4.59 | 4.54 | 4.35 | 4.01 | 3.82 | 4.92 | 5.23 | 4.76 | 4.58 | 4.67 | 4.72 | 4.72 | 4.88 | 5.31 | 5.31 | 5.32 | 5.23 | 5.36 | |
| DOH | days | 67.28 | 66.52 | 79.60 | 80.37 | 83.83 | 91.03 | 95.65 | 74.22 | 69.83 | 76.62 | 79.61 | 78.11 | 77.29 | 77.34 | 74.86 | 68.72 | 68.72 | 68.55 | 69.74 | 68.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.43
= 67.28
nVent Electric PLC's Days of Inventory on Hand (DOH) measures how efficiently the company manages its inventory. A lower DOH indicates that the company is selling products quickly, while a higher DOH suggests slow inventory turnover.
From March 31, 2020, to June 30, 2021, the company's DOH remained relatively stable, fluctuating between 68 and 79 days. However, starting from September 30, 2021, the DOH began to increase significantly, reaching a peak of 95.65 days on June 30, 2023, which indicates a slowdown in inventory turnover.
The higher DOH figures from September 2021 onwards might suggest potential issues such as overstocking, declining sales, or operational inefficiencies affecting the management of inventory. It's essential for nVent Electric PLC to address these concerns to optimize its working capital and improve its overall financial performance.
The DOH decreased slightly by December 31, 2024, but it remained above the levels observed in the earlier periods. This trend indicates that nVent Electric PLC may still be facing challenges in effectively managing its inventory levels. Continued monitoring and strategic adjustments in inventory management practices will be crucial for the company to enhance its operational efficiency and financial health.
Peer comparison
Dec 31, 2024