Gentherm Inc (THRM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.47	5.11	5.61	6.51	7.44
DOH	days	56.44	71.44	65.06	56.06	49.03

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.47
= 56.44

The days of inventory on hand (DOH) for Gentherm Inc have displayed fluctuations over the past five years. The metric was at its lowest in 2019 at 63.28 days, indicating that the company held inventory for an average of approximately 2 months. Subsequently, the DOH increased in the following years, reaching its peak in 2022 at 85.56 days before decreasing slightly to 67.25 days in 2023.

A higher DOH suggests that Gentherm Inc is taking longer to sell its inventory, potentially tying up more capital in unsold goods. Conversely, a lower DOH indicates a quicker inventory turnover, which could be a positive sign of efficient inventory management.

It is essential for Gentherm Inc to closely monitor and manage its inventory levels to ensure optimal efficiency and profitability. Analyzing the factors influencing inventory turnover can provide insights into the company's operations and potentially identify areas for improvement.