Tidewater Inc (TDW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		25.55	32.26	33.61	33.06	23.21	24.31	26.19	23.33	16.82	22.74	19.90	28.85	30.03	27.99	24.18	23.74	24.50	23.00	20.59	19.90
DOH	days	14.28	11.31	10.86	11.04	15.73	15.02	13.93	15.65	21.70	16.05	18.35	12.65	12.15	13.04	15.10	15.38	14.90	15.87	17.73	18.34

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 25.55
= 14.28

Tidewater Inc's Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory. A lower DOH indicates efficient inventory management and quicker inventory turnover.

Analyzing the trend in Tidewater Inc's DOH over the specified periods reveals fluctuations in inventory management. The DOH decreased from 18.34 days as of March 31, 2020, to 12.15 days by December 31, 2021, indicating improved efficiency in selling inventory.

However, there was a notable increase in DOH seen in the subsequent periods, peaking at 21.70 days by December 31, 2022. This increase may suggest potential issues such as overstocking, slower sales, or ineffective inventory management during that period.

The DOH then decreased to 10.86 days as of June 30, 2024, showcasing a significant improvement in inventory turnover efficiency. This decrease in DOH reflects better inventory management practices, potentially leading to cost savings and improved cash flows for the company.

It is essential for Tidewater Inc to closely monitor its inventory levels and sales performance to maintain an optimal balance between inventory levels and demand, ensuring efficient operations and profitability in the long term.