Timken Company (TKR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.63 | 2.53 | 2.58 | 2.62 | 2.67 | 2.73 | 2.64 | 2.68 | 2.68 | 2.81 | 2.72 | 2.79 | 2.91 | 2.99 | 3.02 | 2.99 | 2.98 | 3.15 | 3.18 | 3.19 | |
| DOH | days | 138.54 | 144.14 | 141.41 | 139.39 | 136.89 | 133.56 | 138.37 | 135.96 | 135.97 | 129.75 | 134.07 | 130.94 | 125.59 | 122.14 | 121.06 | 122.11 | 122.67 | 115.84 | 114.72 | 114.39 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.63
= 138.54
The days of inventory on hand (DOH) for Timken Company have shown a fluctuating trend over the past few years. From March 31, 2020, to December 31, 2024, the DOH increased from 114.39 days to 138.54 days, with some fluctuations along the way.
The trend shows that Timken Company may be carrying more inventory relative to its sales, which could indicate inefficiencies in inventory management. High DOH values suggest that the company may be holding excess inventory or facing challenges in selling products efficiently.
It is essential for the company to monitor and manage its inventory levels effectively to optimize cash flow, reduce carrying costs, and prevent obsolescence. Analyzing the reasons behind the increasing DOH and implementing strategies to improve inventory turnover could help Timken Company enhance its operational efficiency and financial performance in the long run.
Peer comparison
Dec 31, 2024