Adapthealth Corp (AHCO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 18.45 | 22.67 | 19.99 | 16.32 | 15.29 | |
| DOH | days | 19.78 | 16.10 | 18.26 | 22.37 | 23.88 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.45
= 19.78
Adapthealth Corp's days of inventory on hand (DOH) has shown a declining trend over the past five years, indicating effective inventory management. The DOH decreased from 23.88 days as of December 31, 2020, to 19.78 days as of December 31, 2024. This improvement suggests that the company has been able to turn its inventory into sales more efficiently, reducing the time it takes to sell its inventory. A lower DOH value generally indicates that the company is carrying less excess inventory, which can lead to lower holding costs and better cash flow management. In conclusion, the decreasing trend in Adapthealth Corp's DOH reflects a positive aspect of its inventory management practices over the years.
Peer comparison
Dec 31, 2024