United Parcel Service Inc (UPS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 90.45 | 78.85 | 98.14 | 117.82 | 123.89 | |
| DOH | days | 4.04 | 4.63 | 3.72 | 3.10 | 2.95 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 90.45
= 4.04
Based on the provided data, United Parcel Service Inc's days of inventory on hand (DOH) has shown a gradual increase over the years.
As of December 31, 2020, the company had an average of 2.95 days worth of inventory on hand, which increased to 3.10 days by December 31, 2021. This indicates a slight increase in the time it takes for the company to sell its inventory.
By December 31, 2022, the DOH further rose to 3.72 days, signaling a continued increase in the company's inventory holding period. This trend persisted into the following years, with DOH reaching 4.63 days by December 31, 2023, before declining slightly to 4.04 days by December 31, 2024.
Overall, the increasing trend in DOH suggests that United Parcel Service Inc may be facing challenges in managing its inventory efficiently, potentially leading to higher carrying costs and possible liquidity issues. It would be advisable for the company to closely monitor and manage its inventory levels to optimize its operations and improve financial performance.
See also:
United Parcel Service Inc Average Inventory Processing Period