WESCO International Inc (WCC)
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 | 4.91 | 4.73 | 4.94 | 4.96 | 4.91 | 4.96 | 4.85 | 4.61 | 4.79 | 4.66 | 4.97 | 5.23 | 5.41 | 5.42 | 5.57 | 5.08 | 4.62 | 3.54 | 2.85 | 7.14 | |
| DOH | days | 74.32 | 77.19 | 73.92 | 73.59 | 74.33 | 73.53 | 75.20 | 79.19 | 76.20 | 78.33 | 73.41 | 69.75 | 67.46 | 67.29 | 65.52 | 71.84 | 78.99 | 103.04 | 128.23 | 51.09 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.91
= 74.32
WESCO International Inc's days of inventory on hand (DOH) is a measure of how efficiently the company is managing its inventory. A lower DOH indicates that the company is selling its inventory quickly and efficiently, while a higher DOH suggests that the company may be holding onto inventory for extended periods, potentially leading to obsolescence or excess carrying costs.
Analyzing the trend in WESCO's DOH from March 31, 2020, to December 31, 2024, we observe fluctuations in the metric. The company's DOH was 51.09 days as of March 31, 2020, indicating a relatively efficient inventory management. However, the DOH increased significantly to 128.23 days by June 30, 2020, which could suggest potential issues with inventory turnover.
Subsequently, WESCO managed to reduce its DOH to 67.29 days by September 30, 2021, showing an improvement in managing inventory levels. The DOH remained relatively stable around the 70-day mark until September 30, 2022, when it increased to 78.33 days, signaling a potential slowdown in inventory turnover.
By December 31, 2023, WESCO's DOH had increased to 74.33 days before slightly decreasing to 73.59 days by March 31, 2024. The DOH continued to fluctuate around the mid-70s range, with a slight uptick to 77.19 days by September 30, 2024.
In conclusion, although there have been fluctuations in WESCO's DOH over the years, the company has generally maintained its inventory levels around 70-80 days. It is important for WESCO to closely monitor its inventory management to optimize working capital utilization and avoid potential risks associated with excessive inventory holding.
Peer comparison
Dec 31, 2024