Whirlpool Corporation (WHR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.11 | 8.30 | 9.26 | 7.43 | 7.97 | |
| DOH | days | 45.01 | 43.96 | 39.40 | 49.12 | 45.78 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.11
= 45.01
To analyze Whirlpool Corporation's Days of Inventory on Hand (DOH) over the past five years, we observe the following trends:
1. In 2020, the DOH was 45.78 days, indicating that, on average, Whirlpool held inventory for approximately 45.78 days before selling it.
2. By the end of 2021, the DOH increased to 49.12 days, suggesting a slight increase in the time it takes to convert inventory into sales.
3. In 2022, there was a notable improvement in inventory management as the DOH decreased to 39.40 days, reflecting a more efficient management of inventory levels.
4. The trend reversed slightly in 2023, with the DOH increasing to 43.96 days, indicating a longer period of holding inventory compared to the previous year.
5. In 2024, the DOH slightly increased to 45.01 days, showing a marginal uptick in the time it takes for Whirlpool to sell its inventory.
Overall, fluctuations in Whirlpool Corporation's Days of Inventory on Hand (DOH) over the five-year period suggest variations in inventory management efficiency. A lower DOH indicates better inventory turnover and potentially improved liquidity, while a higher DOH may suggest excess inventory levels or slower-moving products. It is essential for the company to monitor and manage its inventory effectively to optimize working capital and operational performance.
Peer comparison
Dec 31, 2024