Wolverine World Wide Inc (WWW)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.05 | 3.67 | 2.17 | 3.79 | 4.34 | |
| DOH | days | 90.21 | 99.51 | 168.48 | 96.32 | 84.07 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.05
= 90.21
Wolverine World Wide Inc's Days of Inventory on Hand (DOH) has displayed variability over the years from 2020 to 2024. The trend indicates an upward trajectory from 84.07 days in 2020 to a peak of 168.48 days in 2022, suggesting a significant increase in the average number of days it takes for the company to sell its inventory.
The spike in DOH in 2022 could be a cause for concern as it may signify inefficiencies in inventory management, leading to potential risks such as obsolescence or carrying excess inventory. However, there was a notable decrease in DOH in 2023 to 99.51 days, which may reflect efforts to improve inventory turnover and operational efficiency.
Overall, Wolverine World Wide Inc's DOH has shown fluctuations over the years, highlighting the importance of closely monitoring inventory levels and implementing strategies to optimize inventory turnover and reduce holding costs. Keeping DOH within an optimal range is essential for maintaining liquidity, profitability, and competitiveness in the market.
Peer comparison
Dec 31, 2024