Sherwin-Williams Co (SHW)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.20 | 5.28 | 4.88 | 5.92 | 5.37 | |
| DOH | days | 70.16 | 69.17 | 74.76 | 61.69 | 68.03 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.20
= 70.16
Analyzing Sherwin-Williams Co's Days of Inventory on Hand (DOH) over the past five years reveals fluctuations in the efficiency of managing inventory levels. In 2020, the company had an inventory holding period of 68.03 days, which decreased to 61.69 days in 2021, indicating an improvement in inventory turnover efficiency.
However, the trend reversed in the following years, with DOH increasing to 74.76 days in 2022, before slightly decreasing to 69.17 days in 2023 and then rising to 70.16 days in 2024. These fluctuations suggest potential challenges in inventory management strategies, as higher DOH values indicate longer periods for which inventory remains unsold.
Sherwin-Williams Co should closely monitor its inventory levels and implement strategies to optimize inventory turnover, such as enhancing demand forecasting, adjusting procurement practices, or diversifying product offerings to align inventory levels more closely with customer demand. Efficient inventory management plays a crucial role in maintaining liquidity, reducing carrying costs, and ultimately improving the company's overall financial performance.
Peer comparison
Dec 31, 2024