Watsco Inc (WSO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.93 | 3.83 | 4.14 | 4.90 | 3.92 | |
| DOH | days | 92.93 | 95.37 | 88.27 | 74.42 | 93.01 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.93
= 92.93
The days of inventory on hand (DOH) for Watsco Inc. have fluctuated over the past five years, as follows:
- At the end of 2023, the company had an average inventory level that could last for approximately 92.93 days.
- In 2022, the DOH was slightly higher at 95.37 days, indicating that the company held inventory for a longer period before selling it.
- The DOH decreased to 88.27 days at the end of 2021, suggesting an improvement in inventory management efficiency compared to the previous year.
- In 2020, the DOH was 74.42 days, reflecting a significant decrease from the prior year and potentially indicating better inventory turnover.
- At the end of 2019, the DOH was 93.01 days, which was slightly higher than the most recent figure in 2023.
Overall, the trend in the days of inventory on hand for Watsco Inc. shows some variability, possibly influenced by factors such as sales performance, seasonality, inventory management practices, and economic conditions. The company may need to continue monitoring and optimizing its inventory levels to ensure efficient operations and cost management.