Watsco Inc (WSO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.04 | 3.44 | 3.47 | 3.22 | 3.93 | 3.39 | 3.06 | 3.27 | 3.83 | 3.75 | 3.38 | 3.48 | 4.14 | 4.21 | 4.07 | 3.97 | 4.83 | 4.26 | 4.29 | 3.90 | |
| DOH | days | 90.41 | 106.04 | 105.14 | 113.31 | 92.93 | 107.73 | 119.14 | 111.74 | 95.37 | 97.30 | 107.84 | 104.75 | 88.27 | 86.74 | 89.75 | 92.04 | 75.61 | 85.62 | 85.00 | 93.60 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.04
= 90.41
The days of inventory on hand (DOH) for Watsco Inc has displayed fluctuations over the years based on the provided data. The trend indicates that the company held inventory for extended periods at times and managed to reduce it at other times.
From March 31, 2020, to December 31, 2020, the DOH decreased from 93.60 days to 75.61 days, indicating an improvement in inventory management efficiency. However, from March 31, 2021, to June 30, 2022, there was an increase in DOH, reaching a peak of 119.14 days, which suggests that the company might be facing challenges in efficiently managing its inventory during this period.
Subsequently, the DOH decreased to 90.41 days by December 31, 2024, showcasing efforts to optimize inventory levels. Overall, the fluctuating trend in DOH reflects the company's continuous adjustments in inventory management practices to balance stock levels effectively while meeting customer demand and controlling costs. Further monitoring and analysis of inventory turnover ratios could provide deeper insights into the efficiency of Watsco Inc's inventory management.