Stanley Black & Decker Inc (SWK)
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 | 3.26 | 2.91 | 2.58 | 2.23 | 2.16 | 1.94 | 1.77 | 1.75 | 1.88 | 2.40 | 2.62 | 2.90 | 3.28 | 2.99 | 3.18 | 3.67 | 4.27 | 3.48 | 3.34 | 3.42 | |
| DOH | days | 112.00 | 125.54 | 141.66 | 163.72 | 168.94 | 188.58 | 206.17 | 208.00 | 194.15 | 151.93 | 139.54 | 125.74 | 111.32 | 121.90 | 114.92 | 99.53 | 85.41 | 104.77 | 109.34 | 106.61 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.26
= 112.00
The days of inventory on hand (DOH) for Stanley Black & Decker Inc has shown fluctuations over the past few years. The trend indicates an increase in the DOH from 2019 to 2020, with a peak of 168.94 days at the end of December 2022. This increase suggests that the company might be carrying excess inventory, which could tie up capital and lead to potential obsolescence risks.
From December 2022 to September 2023, there was a gradual decline in DOH, indicating a more efficient management of inventory during this period. However, the DOH increased again to 141.66 days by the end of June 2023, before decreasing to 112.00 days by the end of December 2023.
Overall, a high DOH value suggests that Stanley Black & Decker Inc may need to reassess its inventory management practices to optimize working capital and reduce storage costs. The company should focus on streamlining its supply chain and implementing better demand forecasting to maintain an appropriate level of inventory to support its operations without excess buildup.
Peer comparison
Dec 31, 2023