Smurfit WestRock plc (SW)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Inventory turnover | 7.22 | 7.05 | 6.64 | 7.21 | |
| DOH | days | 50.52 | 51.76 | 54.95 | 50.59 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.22
= 50.52
The days of inventory on hand (DOH) for Smurfit WestRock plc have shown a slight decrease over the past three years, with the metric standing at 50.52 days as of December 31, 2023, compared to 51.76 days in 2022 and 54.95 days in 2021. This trend suggests that the company has been more effective in managing its inventory levels and turning over its inventory in a shorter period of time.
A lower DOH indicates that the company is selling its products more quickly, which could potentially lead to lower storage and carrying costs associated with excess inventory. It also reflects positively on the company's inventory management practices and efficiency in meeting customer demand.
However, it is important to note that inventory levels should be optimized to ensure that the company maintains a balance between stock availability to meet customer demand and minimizing carrying costs. Further analysis of the company's inventory turnover ratio and industry benchmarks would provide a more comprehensive view of its inventory management effectiveness.
Peer comparison
Dec 31, 2023