Marriot Vacations Worldwide (VAC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.61 | 2.17 | 1.82 | 1.49 | 19.98 | |
| DOH | days | 139.99 | 168.58 | 200.33 | 244.30 | 18.27 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.61
= 139.99
Marriott Vacations Worldwide Corp's days of inventory on hand (DOH) has shown a decreasing trend over the past five years. The company's DOH decreased from 245.33 days in 2019 to 206.99 days in 2023. This indicates that the company has been managing its inventory more efficiently, resulting in a shorter time taken to sell its inventory.
A lower DOH suggests that the company is selling its inventory more quickly, which can lead to lower holding costs and potentially higher profits. It also implies better inventory management practices and potentially improved demand forecasting.
However, it is important to note that the ideal DOH can vary by industry and company size. Therefore, it would be beneficial to compare Marriott Vacations Worldwide Corp's DOH with industry benchmarks and its competitors to gain a better understanding of its inventory management efficiency.