Adapthealth Corp (AHCO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 18.41 | 16.75 | 22.25 | 25.26 | 23.91 | 27.87 | 23.35 | 19.21 | 19.99 | 19.25 | 22.37 | 21.87 | 16.17 | 18.28 | 18.58 | 15.65 | 15.29 | 23.72 | 34.12 | 34.58 | |
| DOH | days | 19.83 | 21.79 | 16.40 | 14.45 | 15.27 | 13.10 | 15.63 | 19.00 | 18.26 | 18.96 | 16.32 | 16.69 | 22.58 | 19.96 | 19.65 | 23.32 | 23.88 | 15.38 | 10.70 | 10.56 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.41
= 19.83
The Days of Inventory on Hand (DOH) of Adapthealth Corp has fluctuated over the periods analyzed. In the most recent quarter, as of December 31, 2024, the company held inventory for an average of 19.83 days before it was sold. This was a decrease from the previous quarter's DOH of 21.79 days as of September 30, 2024.
Looking at the trend over the past few years, we can observe that the DOH peaked at 23.88 days as of December 31, 2020, and has since shown some variability but generally trending downwards with intermittent increases. This suggests that Adapthealth Corp has been managing its inventory levels more efficiently, allowing for a shorter time period between inventory acquisition and sale.
It is important to note that a lower DOH generally indicates better inventory management as it implies that the company is selling its inventory more quickly, reducing the risk of obsolescence and freeing up capital for other uses. However, a very low DOH may also indicate stockouts and lost sales if the company is unable to fulfill customer demand promptly.
Overall, Adapthealth Corp's DOH trend reflects a balance between managing inventory levels effectively to optimize working capital and ensuring adequate stock availability to meet customer demands.
Peer comparison
Dec 31, 2024