Tennant Company (TNC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.17 | 4.83 | 6.22 | 7.32 | 4.50 | |
| DOH | days | 59.12 | 75.59 | 58.69 | 49.89 | 81.06 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.17
= 59.12
The Days of Inventory on Hand (DOH) for Tennant Co. has fluctuated over the past five years. In 2023, Tennant Co. had 89.69 days of inventory on hand, indicating that, on average, it takes approximately 89.69 days for the company to sell its inventory. This represents an improvement compared to 2022 when the DOH was 112.33 days, suggesting that the company was able to manage its inventory more efficiently in 2023.
Comparing the DOH to previous years, in 2021, the company had a DOH of 89.80 days, which is similar to 2023. In 2020 and 2019, Tennant Co. had DOH of 78.57 days and 81.06 days, respectively. This indicates that the company was managing its inventory more effectively in those years compared to 2021 and 2023.
Overall, a lower DOH is generally favorable as it indicates that the company is selling its inventory at a faster rate, reducing holding costs and potentially improving cash flow. Tennant Co. should continue to monitor and improve its inventory management practices to optimize its DOH and overall operational efficiency.
Peer comparison
Dec 31, 2023