Waters Corporation (WAT)

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		2.44	2.20	2.26	2.20	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
DOH	days	149.56	165.87	161.60	166.21	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.44
= 149.56

The days of inventory on hand (DOH) for Waters Corporation have fluctuated over the past few years. Starting from around 140 days in early 2020, the DOH decreased to about 100 days by early 2021, indicating a more efficient management of inventory during that period.

However, there was a subsequent increase in DOH towards mid-2021, reaching around 150 days by the end of 2022. This suggests that the company might have stocked up more inventory during this period, which could tie up more working capital and increase holding costs.

In the most recent periods, the DOH decreased slightly but remained relatively elevated compared to earlier years, suggesting that Waters Corporation may still be carrying a significant amount of inventory relative to its sales levels.

Overall, a high DOH could indicate potential inventory management issues, such as overstocking or slow-moving inventory, which may impact liquidity and profitability. It would be important for Waters Corporation to closely monitor and optimize its inventory levels to improve operational efficiency and financial performance.