Werner Enterprises Inc (WERN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		189.78	158.20	190.57	202.55	158.45
DOH	days	1.92	2.31	1.92	1.80	2.30

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 189.78
= 1.92

The days of inventory on hand (DOH) for Werner Enterprises Inc decreased from 2.30 days as of December 31, 2020, to 1.80 days as of December 31, 2021. This indicates that the company was able to manage its inventory more efficiently, possibly by reducing excess inventory levels or improving inventory turnover.

However, the DOH slightly increased to 1.92 days as of December 31, 2022, followed by a further increase to 2.31 days as of December 31, 2023. These increments suggest a potential slowdown in inventory turnover or an increase in inventory levels relative to sales during these periods.

Subsequently, the DOH reverted back to 1.92 days as of December 31, 2024, possibly indicating a successful effort to optimize inventory management once again. Overall, fluctuations in the DOH metric for Werner Enterprises Inc reflect varying levels of efficiency in managing inventory throughout the analyzed period, highlighting the importance of monitoring and adjusting inventory policies to support operational performance.