Tempur Sealy International Inc (TPX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.79 | 5.17 | 5.98 | 6.53 | 6.77 | |
| DOH | days | 63.05 | 70.54 | 61.08 | 55.88 | 53.91 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.79
= 63.05
Over the past five years, Tempur Sealy International Inc's days of inventory on hand (DOH) has fluctuated, ranging from 53.91 days in 2019 to 70.54 days in 2022. The company's DOH decreased to 55.88 days in 2020, then increased again to 61.08 days in 2021, and further decreased to 63.05 days in 2023.
A lower DOH implies that the company is selling its inventory at a faster rate, which can be positive as it indicates efficient inventory management. In contrast, a higher DOH may indicate that the company is holding onto its inventory for a longer period, potentially tying up resources and increasing the risk of obsolete inventory.
Overall, while Tempur Sealy International Inc's DOH has shown some variability over the years, the recent decrease in 2023 compared to the previous year suggests a potential improvement in inventory turnover efficiency. However, further analysis of the company's inventory management practices and industry benchmarks would provide a more comprehensive understanding of the situation.
Peer comparison
Dec 31, 2023