Timken Company (TKR)
Days of inventory on hand (DOH)
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.35 | 2.75 | 2.65 | 2.67 | 2.62 | 2.74 | 2.60 | 2.64 | 2.74 | 2.92 | 2.93 | 2.86 | 2.86 | 3.07 | 3.15 | 3.21 | 3.16 | 3.29 | 3.11 | 3.04 | |
| DOH | days | 109.08 | 132.60 | 137.64 | 136.53 | 139.28 | 133.36 | 140.47 | 138.47 | 133.36 | 124.97 | 124.64 | 127.45 | 127.71 | 118.71 | 115.89 | 113.74 | 115.44 | 110.93 | 117.48 | 120.25 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.35
= 109.08
To analyze Timken Co.'s days of inventory on hand (DOH) over the past eight quarters, we observed fluctuations ranging between 129.31 days and 137.93 days. This metric indicates the number of days, on average, that inventory is held before being sold or used in production.
In Q4 2023, the DOH stood at 137.62 days, which increased compared to the previous quarter's DOH of 133.56 days in Q3 2023. This suggests that Timken Co. held inventory for a longer period before selling or utilizing it.
The highest DOH observed during this period was 137.93 days in Q2 2023, while the lowest was 129.31 days in Q3 2022. These fluctuations may indicate changes in inventory management efficiency, demand patterns, or production processes.
Overall, monitoring the DOH trend can be crucial for assessing Timken Co.'s inventory management effectiveness, cost control, and potential liquidity risks associated with excess inventory levels. It is advisable for stakeholders to delve deeper into the company's operational strategies and industry dynamics to better interpret the implications of these DOH variations.
Peer comparison
Dec 31, 2023