Vontier Corp (VNT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Inventory turnover | 2.65 | 7.45 | 8.24 | 8.96 | |
| DOH | days | 137.91 | 49.00 | 44.32 | 40.74 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.65
= 137.91
The days of inventory on hand (DOH) for Vontier Corporation has exhibited an upward trend over the past five years, increasing from 51.73 days as of December 31, 2019, to 65.06 days as of December 31, 2023. This indicates that Vontier is holding inventory for longer periods before being sold.
A higher DOH value may suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory. It could lead to increased storage costs, risk of obsolescence, and lower liquidity due to tied-up capital in inventory.
It is important for Vontier to monitor its inventory levels closely and implement strategies to optimize inventory turnover, such as improving demand forecasting, streamlining procurement processes, and identifying and addressing slow-moving inventory. By effectively managing its inventory levels, Vontier can enhance operational efficiency, reduce costs, and improve its overall financial performance.
Peer comparison
Dec 31, 2023