Watts Water Technologies Inc (WTS)
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 | 4.31 | 4.37 | 3.98 | 4.18 | 4.47 | 3.92 | 3.79 | 4.03 | 4.27 | 4.32 | 4.68 | 4.88 | 5.09 | 4.93 | 4.78 | 5.05 | 5.26 | 5.10 | 5.07 | 4.87 | |
| DOH | days | 84.67 | 83.59 | 91.80 | 87.38 | 81.57 | 93.21 | 96.20 | 90.48 | 85.38 | 84.55 | 77.93 | 74.82 | 71.68 | 74.08 | 76.40 | 72.25 | 69.43 | 71.59 | 72.00 | 75.01 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.31
= 84.67
To analyze the Days of Inventory on Hand (DOH) for Watts Water Technologies, Inc., we observe fluctuations in the DOH metric over the past eight quarters. The DOH represents the average number of days it takes the company to sell its inventory.
The trend in DOH shows variability across quarters. In Q4 2023, the DOH was 133.05 days, slightly higher than the previous quarter but relatively consistent with historical performance. This indicates that the company might be holding inventory for a slightly longer period compared to the previous quarter.
Looking back to Q2 2023, the DOH spiked to 141.69 days, which was the highest level in recent quarters. This could indicate potential inventory management challenges or slower inventory turnover during that period.
In contrast, Q4 2022 saw a lower DOH of 124.04 days, suggesting more efficient inventory management and quicker inventory turnover compared to the current quarter.
Overall, it is important for Watts Water Technologies, Inc., to closely monitor its inventory levels and turnover rates to ensure optimal inventory management practices and maximize profitability. Fluctuations in DOH can provide insights into the company's operational efficiency, demand forecasting, and inventory control mechanisms.
Peer comparison
Dec 31, 2023