Williams Companies Inc (WMB)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.87 | 3.14 | 3.54 | 3.73 | 2.72 | 1.75 | 1.91 | 3.29 | 1.66 | 2.72 | 4.97 | 6.78 | 15.38 | 14.94 | 17.69 | 23.84 | 11.74 | 8.56 | 8.49 | 13.26 | |
| DOH | days | 127.08 | 116.28 | 103.20 | 97.87 | 134.25 | 208.37 | 191.26 | 110.82 | 219.23 | 134.05 | 73.45 | 53.80 | 23.73 | 24.44 | 20.63 | 15.31 | 31.10 | 42.65 | 42.98 | 27.52 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.87
= 127.08
The Days of Inventory on Hand (DOH) for Williams Cos Inc have shown fluctuations over the past eight quarters, indicating changes in inventory management efficiency.
In Q4 2023, the company had 53.08 days worth of inventory on hand, which was higher than the previous quarter at 44.60 days. This increase suggests that Williams Cos Inc may have been carrying more inventory relative to sales, potentially leading to higher holding costs and reduced liquidity.
Comparing Q4 2023 to the same quarter in the previous year, where DOH was 34.67 days, the current level is significantly higher, indicating a longer inventory turnover cycle. This could mean that the company is facing challenges in managing its inventory efficiently or experiencing slower sales.
On a positive note, in Q1 2022, Williams Cos Inc managed to reduce its DOH to 19.30 days, which was the lowest level in the provided data. This suggests that the company was able to streamline its inventory management processes and turn over its inventory faster, potentially improving profitability and liquidity.
Overall, it would be advisable for Williams Cos Inc to closely monitor its inventory levels and implement strategies to optimize inventory turnover, reduce holding costs, and enhance operational efficiency.
Peer comparison
Dec 31, 2023