PPG Industries Inc (PPG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.44 | 6.95 | 6.82 | 6.91 | 7.62 | |
| DOH | days | 49.07 | 52.51 | 53.51 | 52.82 | 47.87 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.44
= 49.07
To analyze PPG Industries, Inc.'s days of inventory on hand (DOH) over the past five years, we observe a fluctuating trend.
From 2019 to 2020, DOH increased significantly from 72.13 days to 81.43 days, indicating that the company held inventory for a longer period. This may suggest potential inefficiencies in managing inventory levels or challenges in matching supply with demand during that period.
Subsequently, from 2020 to 2021, we see a further increase in DOH to 77.04 days. This continued rise could signal ongoing difficulties in optimizing inventory turnover, potentially tying up capital and increasing holding costs for the company.
However, there was a slight improvement in 2022, with DOH decreasing to 74.74 days. This reduction suggests some progress in streamlining inventory management processes, possibly through better forecasting or inventory control measures.
Finally, in 2023, there was a further decline in DOH to 72.25 days. This indicates a positive trend towards more efficient inventory management, allowing the company to turn over its inventory more quickly and potentially enhance its liquidity and profitability.
Overall, while there have been fluctuations in PPG Industries, Inc.'s DOH over the past five years, it is important for the company to continue monitoring and optimizing its inventory levels to ensure efficient operations and capitalize on potential cost-saving opportunities.
Peer comparison
Dec 31, 2023