Sherwin-Williams Co (SHW)
Days of inventory on hand (DOH)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.20 | 5.24 | 5.22 | 5.09 | 5.28 | 5.61 | 5.27 | 4.76 | 4.88 | 4.99 | 5.08 | 5.07 | 5.92 | 5.99 | 5.84 | 5.39 | 5.37 | 5.70 | 5.32 | 5.02 | |
| DOH | days | 70.16 | 69.65 | 69.93 | 71.68 | 69.17 | 65.08 | 69.31 | 76.62 | 74.76 | 73.17 | 71.81 | 72.01 | 61.69 | 60.93 | 62.48 | 67.66 | 68.03 | 64.01 | 68.61 | 72.69 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.20
= 70.16
The days of inventory on hand (DOH) of Sherwin-Williams Co provides insights into how efficiently the company manages its inventory. A lower DOH indicates that the company is selling its inventory quickly, while a higher DOH suggests slower inventory turnover.
From March 31, 2020, to December 31, 2024, Sherwin-Williams Co's DOH ranged from a low of 60.93 days to a high of 76.62 days. Over this period, the DOH trended relatively stable, with minor fluctuations. Notably, there was a noticeable increase in DOH in the latter half of 2022 and early 2023, potentially indicating slower inventory turnover during that period.
It is essential for the company to monitor its DOH closely to ensure efficient inventory management. High DOH levels can tie up capital in inventory and may indicate overstocking or potential obsolescence issues, impacting profitability. Conversely, a significantly low DOH may lead to stockouts and lost sales opportunities.
Further analysis of factors influencing inventory levels, such as demand trends, production efficiencies, and supply chain disruptions, is crucial to optimizing inventory management practices and maintaining a healthy balance between carrying costs and stock availability.
Peer comparison
Dec 31, 2024
See also:
Sherwin-Williams Co Average Inventory Processing Period (Quarterly Data)