Waste Management Inc (WM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 87.12 | 88.56 | 98.11 | 91.58 | 107.35 | |
| DOH | days | 4.19 | 4.12 | 3.72 | 3.99 | 3.40 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 87.12
= 4.19
Waste Management, Inc.'s days of inventory on hand (DOH) metric has shown a slight increasing trend over the past five years, indicating that the company is holding inventory for a slightly longer period before it is sold or used.
The average DOH over the period is 4.45 days, with a notable increase from 4.07 days in 2019 to 5.01 days in 2023. This suggests that in recent years, Waste Management may be taking longer to convert its inventory into revenue.
It is important to delve deeper into the reasons behind this increase in DOH. This could be due to various factors such as changes in customer demand patterns, supply chain disruptions, or inventory management practices. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Waste Management's inventory management efficiency.
Overall, while a slight increase in DOH may not be alarming, it is essential for Waste Management to monitor this trend closely to ensure optimal inventory turnover and efficiency in its operations.
Peer comparison
Dec 31, 2023