Waste Management Inc (WM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 78.17 | 87.12 | 88.56 | 98.11 | 91.58 | |
| DOH | days | 4.67 | 4.19 | 4.12 | 3.72 | 3.99 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 78.17
= 4.67
Waste Management Inc's days of inventory on hand (DOH) have experienced fluctuations over the past five years. The company's DOH decreased from 3.99 days as of December 31, 2020, to 3.72 days as of December 31, 2021, indicating an improvement in inventory management efficiency. However, the trend reversed in the following years, with the DOH increasing to 4.12 days as of December 31, 2022, 4.19 days as of December 31, 2023, and finally to 4.67 days as of December 31, 2024.
Overall, the increasing trend in DOH from 2022 to 2024 suggests that Waste Management Inc may be holding inventory for a longer period before it is converted into sales. This could potentially tie up more working capital and result in increased holding costs. Management should closely monitor inventory levels and seek to optimize inventory turnover to improve liquidity and operational efficiency.
Peer comparison
Dec 31, 2024