Waters Corporation (WAT)

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		2.26	2.17	2.08	1.63	2.33	2.41	2.57	2.82	2.89	2.54	2.78	3.55	3.04	2.71	2.54	2.58	2.73	2.34	2.46	2.60
DOH	days	161.61	168.54	175.87	223.89	156.39	151.51	142.27	129.58	126.17	143.66	131.40	102.81	119.94	134.78	143.66	141.28	133.66	155.68	148.41	140.31

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.26
= 161.61

The Days of Inventory on Hand (DOH) for Waters Corp. over the past eight quarters show a fluctuating trend. DOH represents the average number of days a company holds its inventory before selling it. In Q4 2023, the DOH was 157.65 days, slightly lower than the previous quarter but higher compared to Q4 2022. This could indicate that Waters Corp. was able to manage its inventory more efficiently in the most recent quarter.

Looking at the trend over the past year, DOH has generally increased from Q1 to Q4, which may suggest that the company's inventory management could have been less effective during the year. In particular, Q3 and Q4 tend to show higher DOH figures compared to Q1 and Q2, indicating a potentially slower turnover of inventory towards the end of the year.

Comparing the DOH figures year over year, there is a noticeable upward trend, indicating that Waters Corp. may be holding onto its inventory for a longer period. This could tie up more of the company's resources in inventory, potentially affecting liquidity and profitability.

Overall, it is essential for Waters Corp. to carefully monitor and manage its inventory levels to optimize efficiency, maintain liquidity, and improve overall financial performance.