Vontier Corp (VNT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.59 | 8.17 | 7.86 | 7.38 | 7.39 | 6.54 | 7.46 | 7.38 | 8.24 | ||||
| DOH | days | 140.72 | 44.66 | 46.43 | 49.45 | 49.38 | 55.82 | 48.91 | 49.46 | 44.32 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.59
= 140.72
The days of inventory on hand (DOH) for Vontier Corporation have shown a general decreasing trend over the past eight quarters, indicating an improvement in inventory management efficiency. In the latest quarter, Q4 2023, the DOH was 65.06 days, the lowest level in the analyzed period. This suggests that Vontier is able to turn over its inventory more quickly, potentially reducing carrying costs and minimizing the risk of obsolete inventory.
The gradual decline in DOH from 72.48 days in Q1 2023 to 65.06 days in Q4 2023 reflects Vontier's efforts to optimize its inventory levels and streamline its supply chain processes. This improvement may be attributed to better demand forecasting, inventory control mechanisms, and efficient production planning.
Comparing to the same quarter of the previous year, the DOH in Q4 2023 (65.06 days) is significantly lower than Q4 2022 (71.92 days), indicating a year-over-year enhancement in inventory management efficiency.
Overall, the decreasing trend in DOH for Vontier Corporation signals positive developments in managing its inventory levels effectively and suggests potential improvements in operational performance and working capital management.
Peer comparison
Dec 31, 2023