Newell Brands Inc (NWL)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 3.60 3.78 3.01 3.65 3.85
DOH days 101.51 96.68 121.37 99.95 94.81

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.60
= 101.51

Days of Inventory on Hand (DOH) is a crucial financial metric that indicates the average number of days it takes for a company to turn its inventory into sales. A higher DOH value typically suggests slower inventory turnover and may indicate potential issues such as overstocking or slow-moving inventory.

Analyzing Newell Brands Inc's DOH over the past five years shows some fluctuations in their inventory management:

- As of December 31, 2020, Newell Brands had a DOH of 94.81 days, indicating that on average, it took them almost 95 days to sell their inventory.
- The DOH increased to 99.95 days by December 31, 2021, suggesting a slightly slower inventory turnover compared to the previous year.
- By December 31, 2022, the DOH further increased to 121.37 days, signaling a significant uptrend in the time taken to convert inventory into sales.
- However, there was a notable decrease in DOH by December 31, 2023, down to 96.68 days, indicating an improvement in inventory management efficiency.
- The trend reversed again by December 31, 2024, with the DOH rising to 101.51 days, suggesting a slight deterioration in inventory turnover performance compared to the previous year.

Overall, the fluctuations in Newell Brands Inc's DOH indicate varying levels of efficiency in managing their inventory over the past five years. It is essential for the company to closely monitor and optimize its inventory turnover to ensure smooth operations and financial health.