Wolverine World Wide Inc (WWW)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.67 | 2.17 | 3.79 | 4.34 | 3.88 | |
| DOH | days | 99.51 | 168.48 | 96.32 | 84.07 | 94.15 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.67
= 99.51
Wolverine World Wide Inc's days of inventory on hand (DOH) has exhibited fluctuations over the past five years. In 2023, the company reported a DOH of 99.51 days, showing an improvement compared to the previous year where it stood at 168.48 days. This decrease indicates that the company has been able to manage its inventory more efficiently, translating into a shorter period it takes to sell its inventory or raw materials.
Comparing the DOH to 2021, we observe a slight uptick from 96.32 days to 99.51 days, suggesting that the company may be holding onto inventory for a slightly longer period in 2023. However, if we consider a longer-term perspective, there has been an improvement in inventory management as the DOH has decreased since 2020 when it was 84.07 days.
Looking back at 2019, when the DOH was 94.15 days, the current DOH of 99.51 days in 2023 indicates a less efficient inventory turnover. It is essential for Wolverine World Wide Inc to monitor its inventory levels closely to ensure optimal levels that balance between meeting customer demand and avoiding excess holding costs.
Overall, the trend in Wolverine World Wide Inc's DOH shows some fluctuations, but the recent decrease is a positive sign of improving inventory management efficiency. The company should continue to focus on optimizing its inventory turnover to enhance working capital efficiency and profitability.
Peer comparison
Dec 31, 2023