Wolverine World Wide Inc (WWW)
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 | 6.47 | 4.55 | 4.17 | 3.68 | 3.11 | 2.03 | 2.72 | 3.63 | 6.05 | 5.63 | 6.61 | 6.15 | 7.92 | 5.76 | 4.98 | 5.15 | 6.15 | 4.80 | 4.91 | 5.31 | |
| DOH | days | 56.37 | 80.15 | 87.59 | 99.11 | 117.36 | 179.44 | 134.28 | 100.46 | 60.33 | 64.83 | 55.25 | 59.35 | 46.11 | 63.32 | 73.26 | 70.88 | 59.37 | 75.99 | 74.28 | 68.72 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.47
= 56.37
The Days of Inventory on Hand (DOH) ratio for Wolverine World Wide Inc has shown fluctuations over the past five years. The trend indicates some potential issues with inventory management.
In the most recent quarter, ending December 31, 2023, the company had 56.37 days of inventory on hand, which is a significant improvement compared to the previous quarter. However, during the past two years, the DOH ratio has been on a somewhat volatile trajectory, reaching as high as 179.44 days in September 2022.
It is essential for Wolverine World Wide Inc to closely monitor and manage its inventory levels to avoid overstocking or understocking issues. A high DOH ratio can tie up working capital and increase holding costs, while a low DOH ratio could result in stockouts and lost sales opportunities.
Further analysis and comparison with industry benchmarks may provide insights into the company's supply chain efficiency and overall operational effectiveness. Management should focus on optimizing inventory turnover to ensure a balance between meeting customer demand and controlling carrying costs.
Peer comparison
Dec 31, 2023