Watts Water Technologies Inc (WTS)
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 | 3.04 | 2.84 | 2.76 | 2.70 | 2.74 | 2.81 | 2.58 | 2.73 | 2.94 | 2.59 | 2.52 | 2.65 | 2.81 | 2.84 | 3.08 | 3.24 | 3.35 | 3.22 | 3.10 | 3.28 | |
| DOH | days | 120.26 | 128.49 | 132.16 | 135.02 | 133.06 | 129.77 | 141.69 | 133.83 | 124.04 | 140.67 | 144.88 | 137.54 | 129.84 | 128.52 | 118.44 | 112.77 | 108.94 | 113.38 | 117.77 | 111.13 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.04
= 120.26
Watts Water Technologies Inc's days of inventory on hand (DOH) has shown some fluctuations over the past few years. The trend indicates an increasing trend in inventory holding periods.
From March 31, 2020, to June 30, 2022, there was a gradual increase in the DOH metric, reaching its peak at 144.88 days. After June 30, 2022, there was a slight decline in DOH, with some fluctuations but generally remaining above 120 days, indicating that the company holds its inventory for a relatively long period.
Although the DOH metric decreased from June 30, 2022, to December 31, 2024, dropping to 120.26 days, it still signifies that Watts Water Technologies Inc takes approximately four months to sell its inventory.
Overall, the analysis suggests that the company has been maintaining a significant amount of inventory on hand relative to its sales levels, which may tie up capital and lead to increased carrying costs. Management may need to review and optimize their inventory management practices to improve efficiency and reduce carrying costs.
Peer comparison
Dec 31, 2024