Terex Corporation (TEX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.54 | 3.35 | 3.59 | 3.85 | 4.16 | |
| DOH | days | 103.14 | 108.90 | 101.72 | 94.88 | 87.82 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.54
= 103.14
The days of inventory on hand (DOH) for Terex Corporation have shown an increasing trend over the past five years. In particular, the DOH has risen from 87.82 days as of December 31, 2020, to 103.14 days as of December 31, 2024. This indicates that on average, Terex has been holding inventory for a longer period before it is sold or used in production.
A higher DOH value could suggest potential issues with inventory management, such as overstocking or slow-moving inventory. It may also tie up working capital and increase carrying costs for the company. However, a closer investigation into the company's industry dynamics, production cycle, and sales patterns is necessary to gain a more nuanced understanding of the implications of the increasing DOH for Terex Corporation.