Gibraltar Industries Inc (ROCK)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.93 | 8.43 | 6.29 | 5.96 | 7.90 | |
| DOH | days | 52.69 | 43.30 | 58.04 | 61.27 | 46.23 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.93
= 52.69
Based on the data provided, Gibraltar Industries Inc's days of inventory on hand (DOH) has shown some fluctuations over the past five years. In December 2020, the company had an inventory turnover cycle of 46.23 days, which increased to 61.27 days by December 2021. Subsequently, by December 2022, the DOH decreased to 58.04 days, followed by a further drop to 43.30 days by December 2023. However, the DOH increased again to 52.69 days by December 2024.
Overall, these fluctuations indicate that Gibraltar Industries Inc has been managing its inventory levels with varying degrees of efficiency over the years. A lower DOH suggests that the company is selling its inventory at a faster rate, which can be beneficial for cash flow and profitability. Conversely, a higher DOH may indicate that excess inventory is being held, potentially tying up capital and leading to storage costs.
It would be advisable for the company to closely monitor its inventory management practices to optimize the balance between holding enough inventory to meet demand and minimizing the costs associated with excess inventory.
Peer comparison
Dec 31, 2024