Westinghouse Air Brake Technologies Corp (WAB)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.76 | 3.65 | 3.65 | 3.62 | 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 | |
| DOH | days | 97.10 | 100.06 | 99.96 | 100.92 | 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 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.76
= 97.10
The days of inventory on hand (DOH) for Westinghouse Air Brake Technologies Corp has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The company managed its inventory turnover in a range from a low of 85.84 days on March 31, 2020, to a high of 109.00 days on March 31, 2023, before stabilizing around the 100-day mark in later periods.
The trend in DOH indicates that the company may have experienced challenges in managing its inventory efficiently in the earlier years, leading to higher days of inventory on hand. However, there seems to be improvement as the DOH decreased in the later years, showing a potentially more effective inventory management strategy.
Analyzing the DOH metric can provide insights into the company's inventory holding practices, the effectiveness of its supply chain management, and the company's ability to convert inventory into sales. The decrease in DOH over time may suggest that the company has been able to streamline its inventory processes and optimize its inventory levels, which could lead to improved cash flow and profitability. However, the level of DOH should be assessed in conjunction with industry benchmarks and company-specific factors to get a comprehensive understanding of Westinghouse Air Brake Technologies Corp's inventory management performance.
Peer comparison
Dec 31, 2024