PPG Industries Inc (PPG)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.01 | 5.03 | 4.88 | 4.74 | 4.48 | |
| DOH | days | 72.83 | 72.56 | 74.74 | 77.04 | 81.43 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.01
= 72.83
Based on the data provided:
- PPG Industries Inc's days of inventory on hand (DOH) has shown a gradual decline over the past five years, from 81.43 days as of December 31, 2020, to 72.83 days as of December 31, 2024.
- This suggests that the company has been managing its inventory more efficiently over the years, holding less inventory for a shorter period before selling it.
- A decreasing trend in DOH can indicate improved inventory management practices, such as better forecasting, streamlined production processes, or more effective inventory turnover.
- A lower DOH value generally signifies that the company is able to sell its inventory more quickly, which could result in lower carrying costs, reduced risk of obsolescence, and potentially improved cash flow.
- However, it is important to assess DOH in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of PPG Industries Inc's inventory management efficiency.
Peer comparison
Dec 31, 2024