Vontier Corp (VNT)

Days of inventory on hand (DOH) is a crucial measure of efficiency in managing inventory levels for Vontier Corp. From the provided data, we can observe the trend in Vontier Corp's DOH over the five-year period:

1. As of December 31, 2020, Vontier Corp had approximately 40.74 days of inventory on hand, indicating that, on average, it took around 40.74 days to convert inventory into sales.

2. This metric increased to 44.32 days by December 31, 2021, suggesting a slight decrease in inventory turnover efficiency compared to the previous year.

3. By December 31, 2022, Vontier Corp's DOH further increased to 49.00 days, reflecting a continuing trend of slower inventory turnover.

4. The most significant change occurred by December 31, 2023, when the DOH spiked to 137.91 days. This substantial increase may raise concerns about potential issues such as overstocking, slowing demand, or inefficiencies in the supply chain.

5. By December 31, 2024, the DOH reached 160.44 days, indicating a continued challenge in managing inventory effectively and efficiently.

In conclusion, the increasing trend in Vontier Corp's days of inventory on hand over the five-year period suggests a potential need for the company to review and optimize its inventory management practices to enhance efficiency, reduce carrying costs, and improve overall operational performance.

Peer comparison

Dec 31, 2024