Tidewater Inc (TDW)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019
Inventory turnover		37.20	36.96	26.17	28.15	31.19	28.00	20.33	27.81	24.48	35.34	36.72	33.75	29.10	32.30	33.96	30.71	26.87	22.90	21.95	21.93
DOH	days	9.81	9.88	13.95	12.97	11.70	13.04	17.95	13.12	14.91	10.33	9.94	10.82	12.54	11.30	10.75	11.88	13.58	15.94	16.63	16.64

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 37.20
= 9.81

The Days of Inventory on Hand (DOH) for Tidewater Inc has fluctuated over the past few quarters, ranging from 9.81 days to 17.95 days. A lower DOH indicates that the company is effectively managing its inventory turnover by selling goods quickly, while a higher DOH suggests that the company may be holding onto inventory for a longer period, which could tie up working capital.

Analyzing the trend, we observe that the DOH was relatively stable around 10-12 days from Dec 2019 to Sep 2023. However, there was a significant increase in DOH to 17.95 days as of Dec 31, 2023, before gradually decreasing to 9.81 days as of Jun 30, 2024.

The decrease in DOH from Dec 2023 to Jun 2024 indicates that Tidewater Inc may have improved its inventory management efficiency, possibly by reducing excess inventory levels or streamlining its supply chain processes. This improvement suggests a positive trend towards optimizing working capital utilization and potentially lowering carrying costs associated with inventory.

Further analysis and comparison with industry benchmarks or historical data could provide additional insights into Tidewater Inc's inventory management performance and its implications for overall operational efficiency and financial health.