Terex Corporation (TEX)

The days of inventory on hand (DOH) for Terex Corp. have displayed a consistent increase over the past five years, indicating a lengthening period for which inventory remains unsold or unused. While in 2019 the DOH stood at 89.29 days, by the end of 2023, it had risen to 108.91 days. This upward trend suggests potential inefficiencies in inventory management or slower inventory turnover within the company.

The gradual rise in DOH could signify challenges in forecasting demand accurately, leading to excess inventory levels. Alternatively, it may point towards slow-moving or obsolete inventory that is taking longer to sell or utilize. Terex Corp. may need to re-evaluate its inventory practices, such as optimizing procurement processes, enhancing demand forecasting techniques, or implementing better inventory monitoring systems to improve efficiency and reduce carrying costs associated with excess inventory. It is essential for the company to address these issues promptly to enhance its working capital management and overall operational effectiveness.