Timken Company (TKR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.62 | 2.70 | 2.69 | 2.91 | 2.98 | |
| DOH | days | 139.32 | 135.20 | 135.52 | 125.59 | 122.67 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.62
= 139.32
The Days of Inventory on Hand (DOH) for Timken Company has exhibited a gradual increasing trend over the past five years, indicating a potential inefficiency in managing its inventory levels. The DOH has risen from 122.67 days as of December 31, 2020, to 139.32 days as of December 31, 2024. This suggests that the company is holding onto its inventory for a longer period before it is sold or utilized.
A higher DOH value could signify various factors such as overstocking, slow-moving inventory, or possible issues in forecasting demand accurately. Timken Company may need to evaluate its inventory management practices to optimize its working capital and reduce the risk of obsolete inventory. Monitoring and controlling inventory levels effectively can help improve cash flow and overall operational efficiency in the long run.
Peer comparison
Dec 31, 2024