Watts Water Technologies Inc (WTS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.04 | 2.74 | 2.94 | 2.81 | 3.35 | |
| DOH | days | 120.25 | 133.05 | 124.04 | 129.84 | 108.94 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.04
= 120.25
The days of inventory on hand (DOH) for Watts Water Technologies Inc have shown some fluctuations over the years. In 2020, the company had an inventory turnover rate of 108.94 days, which increased to 129.84 days by the end of 2021. Subsequently, there was a slight decrease in 2022 to 124.04 days, followed by a further increase in 2023 to 133.05 days. However, by the end of 2024, the DOH decreased to 120.25 days.
These changes in the DOH metric indicate a fluctuating efficiency in managing inventory levels. A higher DOH suggests that the company may be holding excess inventory, leading to potential carrying costs and reduced liquidity. Conversely, a lower DOH may imply the risk of stockouts and potential missed sales opportunities. Monitoring these trends and evaluating the underlying reasons for the fluctuations can help the company optimize its inventory management strategies for improved operational efficiency and financial performance.
Peer comparison
Dec 31, 2024