SPX Corp (SPXC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.37 | 3.87 | 3.84 | 4.15 | 6.67 | |
| DOH | days | 83.51 | 94.28 | 95.05 | 87.95 | 54.72 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.37
= 83.51
Based on the data provided, SPX Corp's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The DOH increased from 54.72 days at the end of December 2020 to 87.95 days at the end of December 2021. This significant increase may indicate that SPX Corp has been carrying more inventory relative to its sales volume, which could tie up working capital and potentially lead to higher carrying costs.
Subsequently, the DOH continued to rise, reaching 95.05 days by the end of December 2022. This extended period indicates that SPX Corp may have experienced challenges in managing its inventory efficiently, possibly resulting in overstocking or slower inventory turnover.
There was a slight decrease in DOH to 94.28 days by the end of December 2023. While this decrease may suggest some improvement in inventory management practices, the DOH remained elevated, indicating that SPX Corp still had excess inventory on hand.
By the end of December 2024, the DOH had decreased further to 83.51 days. This decrease may point towards a more effective inventory management strategy being implemented by the company, leading to a reduction in excess inventory levels and potentially lower carrying costs.
In conclusion, the fluctuating trend in SPX Corp's days of inventory on hand over the past five years indicates potential challenges in managing inventory efficiently. Continued monitoring and improvement of inventory management practices could help the company optimize its working capital and enhance overall operational efficiency.
Peer comparison
Dec 31, 2024