Weatherford International PLC (WFRD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.59 | 0.45 | 0.48 | 2.66 | 3.96 | |
| DOH | days | 621.21 | 803.47 | 764.22 | 137.31 | 92.08 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.59
= 621.21
Weatherford International plc's Days of Inventory on Hand (DOH) measures how many days, on average, the company holds inventory before it is sold.
Looking at the data for the past three years:
- As of December 31, 2023, the DOH was 84.72 days, showing a slight increase compared to the prior year.
- On December 31, 2022, the DOH stood at 83.27 days, indicating a decrease from the previous year.
- On December 31, 2021, the DOH was 90.04 days, reflecting a longer period of holding inventory compared to the subsequent years.
The decreasing trend from 2021 to 2022 suggests that Weatherford International plc may have improved its inventory management efficiency during that period. However, the increase in DOH from 2022 to 2023 indicates a potential slowdown in inventory turnover, which could lead to higher holding costs and obsolete inventory risks.
Overall, the company should continue to monitor its inventory levels closely to optimize working capital efficiency and maintain a balance between inventory levels and customer demand.
Peer comparison
Dec 31, 2023