Pitney Bowes Inc (PBI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.74 | 13.04 | 32.47 | 33.64 | 28.16 | |
| DOH | days | 23.19 | 27.98 | 11.24 | 10.85 | 12.96 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.74
= 23.19
Pitney Bowes, Inc.'s days of inventory on hand (DOH) has exhibited some fluctuation over the past five years. The company's DOH was highest in 2019 at 13.27 days and decreased in 2020 to 10.19 days. Subsequently, there was an upward trend in 2021 with DOH at 11.45 days, followed by a slight increase in 2022 to 12.70 days. However, there was a notable improvement in inventory management in 2023, as indicated by the decrease in DOH to 11.72 days.
Overall, the trend in DOH suggests that Pitney Bowes, Inc. has made efforts to optimize its inventory levels, particularly in 2020 and 2023. A lower DOH indicates that the company is managing its inventory efficiently, potentially reducing carrying costs and minimizing the risk of obsolete inventory. However, it is essential for the company to strike a balance between maintaining an adequate level of inventory to meet customer demand and avoiding excessive holding costs.