Valmont Industries Inc (VMI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.04 | 6.13 | 4.42 | 4.50 | 6.01 | |
| DOH | days | 60.44 | 59.50 | 82.63 | 81.09 | 60.77 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.04
= 60.44
The Days of Inventory on Hand (DOH) for Valmont Industries Inc has shown some fluctuations over the past five years. In 2020, the DOH was 60.77 days, which increased to 81.09 days in 2021 and further to 82.63 days in 2022. However, there was a notable decrease in 2023, with the DOH dropping to 59.50 days, followed by a slight increase to 60.44 days in 2024.
A higher DOH indicates that the company is holding onto inventory for a longer period before it is sold, which can tie up capital and lead to higher carrying costs. Conversely, a lower DOH suggests efficient inventory management and faster inventory turnover.
Overall, Valmont Industries Inc should continue monitoring its inventory management practices to ensure an optimal balance between maintaining sufficient inventory levels to meet demand while also avoiding excessive holding costs.
Peer comparison
Dec 31, 2024