Trimble Inc (TRMB)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.13 | 6.66 | 3.90 | 4.47 | 4.62 | |
| DOH | days | 59.59 | 54.81 | 93.53 | 81.63 | 79.06 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.13
= 59.59
Days of Inventory on Hand (DOH) is a crucial ratio that indicates the average number of days it takes for a company to sell its inventory. A lower DOH is generally favorable as it suggests that inventory is being managed efficiently.
Trimble Inc's DOH has shown fluctuations over the past five years. As of December 31, 2020, the company had 79.06 days of inventory on hand, which increased slightly to 81.63 days by December 31, 2021. However, there was a significant jump to 93.53 days by December 31, 2022, indicating a potential inefficiency in inventory management during that period.
Subsequently, Trimble Inc managed to improve its inventory management, as evidenced by the decrease in DOH to 54.81 days by December 31, 2023, and further to 59.59 days by December 31, 2024. This downward trend in the latter years suggests that Trimble Inc may have implemented better inventory control measures leading to a more efficient turnover of inventory.
Overall, closely monitoring and managing inventory levels is essential for Trimble Inc to optimize its operations, reduce holding costs, and maximize profitability.
Peer comparison
Dec 31, 2024