Tidewater Inc (TDW)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		26.20	20.33	36.72	34.01	21.95
DOH	days	13.93	17.95	9.94	10.73	16.63

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 26.20
= 13.93

The Days of Inventory on Hand (DOH) ratio measures how many days, on average, a company holds its inventory before selling it. A lower DOH implies the company is efficiently managing its inventory, while a higher DOH may indicate potential issues with inventory management or slow sales.

In the case of Tidewater Inc, there has been fluctuation in its DOH over the past five years:
- In 2023, the DOH stands at 13.93 days, showing an improvement from the previous year.
- In 2022, the DOH increased to 17.95 days, indicating that the company took longer to sell its inventory compared to 2021.
- In 2021, the DOH was relatively low at 9.94 days, suggesting efficient inventory management.
- In 2020, the DOH was slightly higher at 10.73 days compared to 2021.
- In 2019, the DOH peaked at 16.63 days, indicating a potential inefficiency in inventory turnover.

Overall, Tidewater Inc has shown varying levels of inventory management efficiency over the years. It is important for the company to analyze the reasons behind these fluctuations and implement strategies to optimize inventory levels to ensure smooth operations and maximize profitability.