Acadia Healthcare Company Inc (ACHC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 19.94 | 423.80 | 293.62 | 278.84 | 255.98 | |
| DOH | days | 18.31 | 0.86 | 1.24 | 1.31 | 1.43 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.94
= 18.31
The days of inventory on hand (DOH) metric measures how many days, on average, it takes for a company to sell its inventory.
For Acadia Healthcare Company Inc, the trend in DOH over the past five years demonstrates efficiency in managing inventory. The DOH decreased from 1.43 days on December 31, 2020, to 1.31 days on December 31, 2021, indicating a slight improvement. This trend continued with further reductions to 1.24 days on December 31, 2022, and a significant decrease to 0.86 days on December 31, 2023, showing even greater efficiency in inventory turnover.
However, there was a substantial spike in DOH to 18.31 days on December 31, 2024. This significant increase may suggest challenges in inventory management, such as overstocking or issues with sales performance impacting the turnover rate.
It is essential for Acadia Healthcare Company Inc to further investigate the reasons behind the sudden spike in DOH in 2024 and take corrective actions to maintain efficient inventory management practices. Monitoring and managing inventory levels effectively can help optimize working capital and enhance overall operational performance.
Peer comparison
Dec 31, 2024