Williams Companies Inc (WMB)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.89 | 2.76 | 1.66 | 15.38 | 11.24 | |
| DOH | days | 126.28 | 132.43 | 219.23 | 23.73 | 32.47 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.89
= 126.28
The days of inventory on hand (DOH) for Williams Cos Inc has shown a fluctuating trend over the past five years. The DOH increased from 23.27 days in 2019 to 32.13 days in 2020, indicating an increase in the number of days the company's inventory is held before being sold. This trend continued with further increases to 35.19 days in 2021 and 34.67 days in 2022.
However, there was a significant jump in the DOH to 53.08 days in 2023, representing a substantial increase in the amount of time the company's inventory is held. A higher DOH may suggest potential issues such as overstocking, slowing sales, or inefficiencies in inventory management.
It is essential for Williams Cos Inc to closely monitor its inventory levels and implement effective inventory management strategies to ensure optimal operations and profitability. Further analysis of the reasons behind the increase in DOH in 2023 would be necessary to address any underlying issues and improve the company's overall financial performance.
Peer comparison
Dec 31, 2023