Westinghouse Air Brake Technologies Corp (WAB)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.70 | 3.60 | 4.13 | 4.17 | 4.22 | |
| DOH | days | 98.63 | 101.28 | 88.40 | 87.62 | 86.41 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.70
= 98.63
The Days of Inventory on Hand (DOH) for Westinghouse Air Brake Technologies Corp has shown a fluctuating trend over the past five years. In 2023, the DOH decreased to 123.82 days from 127.52 days in 2022, indicating that the company was able to manage its inventory more efficiently. However, it is still higher compared to 2021 when it was 113.05 days. This suggests that there might still be room for improvement in inventory management.
Comparing the current DOH to 2020 and 2019, we see a gradual increase over the years. In 2020, the DOH was 110.60 days, and in 2019 it was 109.28 days. This upward trend could indicate potential inefficiencies in inventory management practices during those years.
Overall, it is essential for Westinghouse Air Brake Technologies Corp to continue monitoring and optimizing its inventory levels to strike a balance between having enough inventory to meet demand and avoiding holding excess inventory for extended periods, which can tie up capital and increase storage costs.
Peer comparison
Dec 31, 2023