Westinghouse Air Brake Technologies Corp (WAB)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.65 | 3.63 | 3.36 | 3.35 | 3.56 | 3.46 | 3.59 | 3.78 | 4.07 | 4.11 | 4.16 | 4.00 | 4.11 | 3.93 | 3.98 | 4.25 | 4.17 | 3.21 | 2.89 | 2.28 | |
| DOH | days | 99.94 | 100.58 | 108.74 | 109.00 | 102.57 | 105.51 | 101.78 | 96.54 | 89.72 | 88.88 | 87.69 | 91.23 | 88.84 | 92.77 | 91.81 | 85.84 | 87.43 | 113.60 | 126.10 | 160.19 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.65
= 99.94
The days of inventory on hand (DOH) for Westinghouse Air Brake Technologies Corp has shown some fluctuation over the past eight quarters. The company's inventory turnover efficiency can be evaluated by this ratio, which indicates the number of days it takes for the company to sell its inventory.
In Q1 2022, the company had 121.56 days of inventory on hand. Subsequently, the DOH increased in Q2 2022 to 128.22 days before slightly decreasing in Q3 2022 to 132.13 days. The trend continued as DOH decreased further in Q4 2022 to 127.52 days. However, starting from Q1 2023, there was a consistent increase in the DOH metric, reaching its peak at 135.11 days in Q1 2023. The trend continued into Q2 2023 with 134.24 days and Q3 2023 with 123.74 days. In the most recent quarter, Q4 2023, the DOH stood at 123.82 days.
The increasing trend in DOH from Q1 2023 to Q1 2023 suggests that the company may be experiencing challenges in efficiently managing its inventory levels or facing slower inventory turnover. Further analysis is needed to understand the reasons behind this trend and to determine if it is a cause for concern or part of the company's operational strategy.
Peer comparison
Dec 31, 2023