Snap-On Inc (SNA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.09 | 0.07 | 0.10 | 0.16 | 0.15 | |
| DOH | days | 3,960.66 | 5,303.54 | 3,622.06 | 2,283.93 | 2,500.41 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.09
= 3,960.66
Over the past five years, Snap-On Inc's days of inventory on hand (DOH) have shown varying trends. In 2023, the company reported 3,960.66 days of inventory on hand, a significant decrease from the previous year where it was 5,303.54 days. However, compared to 2021 and 2020 where the DOH was 3,622.06 days and 2,283.93 days respectively, the 2023 figure indicates an increase.
Snap-On Inc's DOH in 2019 was 2,500.41 days, and since then, there has been fluctuation in inventory management. The significant increase in DOH in 2022 compared to 2021 may indicate potential issues with inventory management efficiency, leading to higher inventory levels and potential risks of overstocking.
It is important for Snap-On Inc to closely monitor and manage its inventory levels to optimize operational efficiency and maintain healthy liquidity. Further analysis of the company's inventory turnover ratio and comparison with industry benchmarks can provide additional insights into the effectiveness of inventory management practices.
Peer comparison
Dec 31, 2023