nVent Electric PLC (NVT)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.67 | 6.42 | 6.36 | 7.52 | 5.48 | 5.18 | 6.62 | 6.96 | 6.37 | 6.15 | 6.32 | 6.42 | 6.44 | 7.45 | 8.15 | 8.22 | 12.41 | 9.92 | 8.73 | 7.54 | |
| DOH | days | 47.58 | 56.85 | 57.36 | 48.56 | 66.59 | 70.49 | 55.12 | 52.41 | 57.31 | 59.35 | 57.73 | 56.85 | 56.66 | 49.02 | 44.78 | 44.38 | 29.42 | 36.79 | 41.79 | 48.42 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.67
= 47.58
nVent Electric PLC's days of inventory on hand (DOH) has shown fluctuations over the past few quarters. The trend indicates that the company held inventory for an average of 47.58 days at the end of September 2024. This is a decrease from the previous quarter's DOH of 56.85 days.
Comparing the current DOH to historical data, we observe that the current level is lower than the peaks seen in the last few quarters, such as 70.49 days at the end of June 30, 2023. The company has been managing its inventory more efficiently in recent quarters.
A decreasing trend in DOH is generally positive as it signifies that the company is selling its products more quickly and efficiently converting inventory into sales. However, it is important to ensure that the decrease is not due to understocking, which could lead to potential stockouts and lost sales opportunities.
Overall, nVent Electric PLC's decreasing trend in DOH suggests improved inventory management, but continued monitoring is necessary to ensure that inventory levels are optimized for operational efficiency and customer demand.
Peer comparison
Sep 30, 2024