Sherwin-Williams Co (SHW)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.40 | 8.75 | 8.09 | 7.23 | 7.32 | 7.43 | 7.59 | 7.63 | 8.97 | 9.27 | 9.17 | 8.56 | 8.60 | 8.25 | 6.87 | 5.73 | 5.22 | 5.49 | 5.33 | 5.09 | |
| DOH | days | 43.48 | 41.72 | 45.14 | 50.46 | 49.89 | 49.14 | 48.09 | 47.84 | 40.70 | 39.40 | 39.82 | 42.62 | 42.44 | 44.23 | 53.15 | 63.68 | 69.92 | 66.44 | 68.45 | 71.73 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.40
= 43.48
The days of inventory on hand (DOH) for Sherwin-Williams Co. have shown some fluctuations over the past eight quarters. In Q1 2023, the company had an inventory on hand for approximately 76.62 days, which was higher compared to the prior quarter at 69.31 days. This suggests that the company may have had a higher level of inventory relative to its sales in Q1 2023.
However, looking at the trend over the eight quarters, the DOH metric has generally been in the range of mid to high 60 days, indicating that Sherwin-Williams Co. typically holds inventory for a few months before selling it. The highest peak in DOH was observed in Q1 2023, while the lowest point was in Q3 2023 at 65.08 days.
Overall, it is essential for Sherwin-Williams Co. to effectively manage its inventory levels to ensure optimal operational efficiency and minimize carrying costs. Monitoring and potentially reducing the DOH metric can help the company enhance its cash flow and profitability by aligning inventory levels with demand patterns.
Peer comparison
Dec 31, 2023
See also:
Sherwin-Williams Co Average Inventory Processing Period (Quarterly Data)