Rockwell Automation Inc (ROK)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.61 | 5.66 | 5.55 | 5.24 | 5.40 | 4.92 | 5.15 | 5.17 | 6.15 | 6.39 | 6.69 | 7.01 | 7.29 | 7.57 | 7.70 | 8.04 | 8.97 | 7.94 | 8.66 | 8.71 | |
| DOH | days | 65.05 | 64.46 | 65.81 | 69.60 | 67.60 | 74.22 | 70.88 | 70.59 | 59.31 | 57.11 | 54.52 | 52.06 | 50.09 | 48.24 | 47.39 | 45.40 | 40.68 | 45.95 | 42.15 | 41.91 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.61
= 65.05
Days of Inventory on Hand (DOH) is a financial ratio that indicates the average number of days a company holds its inventory before selling it. A lower DOH suggests that the company is efficient in managing its inventory and converting it into sales quickly.
Analyzing the historical trend of Rockwell Automation Inc's DOH shows that the ratio has been fluctuating over the past few years. In recent quarters, the DOH has ranged between 64 and 70 days, indicating some variability in inventory management.
On a positive note, the DOH has decreased from around 70 days in the most recent quarter to about 65 days in the current quarter, suggesting potential improvements in inventory turnover efficiency. However, it is essential to monitor this ratio closely to ensure that the company maintains an optimal balance between holding enough inventory to meet demand and avoiding excess inventory levels.
Overall, a downward trend in DOH is generally favorable as it signifies better inventory management and liquidity. Monitoring changes in DOH over time can provide insights into the company's operational efficiency and financial performance.
Peer comparison
Sep 30, 2024