World Kinect Corporation (WKC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 80.12 | 70.20 | 74.31 | 63.92 | 56.66 | |
| DOH | days | 4.56 | 5.20 | 4.91 | 5.71 | 6.44 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 80.12
= 4.56
To analyze World Kinect Corporation's days of inventory on hand (DOH) over the past five years, we can observe a decreasing trend in the DOH ratio. In December 2020, the DOH was 6.44 days, which decreased to 5.71 days by December 2021. Subsequently, the ratio further reduced to 4.91 days by December 2022. However, there was a slight increase to 5.20 days in December 2023, followed by a decrease to 4.56 days in December 2024.
The decreasing trend in the DOH ratio suggests that World Kinect Corporation has been managing its inventory more efficiently over the years. A lower DOH indicates that the company is holding less inventory relative to its sales, which could lead to lower carrying costs and potential improvements in cash flow. It is crucial for the company to continue monitoring and optimizing its inventory management practices to sustain this positive trend and enhance its overall operational performance.