WESCO International Inc (WCC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.87 | 5.71 | 6.53 | 5.54 | 6.70 | |
| DOH | days | 62.15 | 63.91 | 55.88 | 65.93 | 54.48 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.87
= 62.15
The days of inventory on hand (DOH) for Wesco International, Inc. have fluctuated over the past five years. The company's inventory turnover has varied, as evidenced by the changes in DOH from 54.48 days in 2019 to 78.99 days in 2020, followed by a decrease to 67.46 days in 2021, and then an increase to 76.20 days in 2022 and a slight decrease to 74.33 days in 2023.
A higher DOH value indicates that the company is holding onto inventory for a longer period before selling it, which could tie up capital and lead to storage costs. Conversely, a lower DOH suggests that the company is efficiently managing its inventory and turning it into sales quicker.
Overall, Wesco International, Inc. should aim to strike a balance in managing its inventory levels to ensure optimal utilization of resources and maintain competitiveness in its industry. Further analysis of the company's supply chain management practices and demand forecasting may provide insights into improving inventory turnover efficiency.
Peer comparison
Dec 31, 2023