Valmont Industries Inc (VMI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.13 | 4.42 | 4.50 | 6.01 | 6.13 | |
| DOH | days | 59.50 | 82.63 | 81.09 | 60.77 | 59.57 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.13
= 59.50
Valmont Industries Inc has shown fluctuations in its days of inventory on hand (DOH) over the past five years. In 2023, the company reported a DOH of 59.50 days, which represents a decrease from the prior year. This reduction indicates an improvement in managing inventory levels efficiently.
Comparing to previous years, in 2022 and 2021, Valmont Industries had higher DOH figures of 82.63 days and 81.09 days, respectively. This suggests that the company took longer to convert its inventory into sales during those periods, which may have tied up more capital in inventory.
In 2020 and 2019, the company had DOH figures of 60.77 days and 59.57 days, respectively, which were relatively lower than the figures in 2022 and 2021. This implies that the company was able to turn over its inventory more quickly during those years, potentially reducing carrying costs and improving cash flow.
Overall, monitoring trends in DOH can provide insights into how effectively Valmont Industries is managing its inventory levels. A decreasing trend in DOH indicates improved efficiency in inventory management, whereas an increasing trend may suggest potential issues such as overstocking or slowing sales.
Peer comparison
Dec 31, 2023