Waters Corporation (WAT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		5.53	4.02	4.32	5.18	5.34
DOH	days	66.01	90.82	84.41	70.50	68.37

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.53
= 66.01

The days of inventory on hand (DOH) for Waters Corporation have shown a varying trend over the past five years. Starting at 68.37 days on December 31, 2020, the DOH increased to 70.50 days by the end of 2021. There was a significant spike in DOH to 84.41 days by December 31, 2022, and further to 90.82 days by December 31, 2023. However, in December 31, 2024, the DOH decreased to 66.01 days, representing an improvement in the management of inventory levels.

The increasing trend in DOH from 2020 to 2023 suggests that Waters Corporation may have been carrying excess inventory or facing challenges in efficiently managing its inventory turnover. This can tie up capital, increase storage costs, and potentially signify inefficiencies in production or demand forecasting. The subsequent decrease in DOH in 2024 indicates a potential positive development in inventory management, leading to a reduction in the number of days inventory is held.

Further analysis and comparison with industry standards or historical data would provide a more comprehensive understanding of Waters Corporation's inventory management efficiency and operational effectiveness.