Api Group Corp (APG)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 33.85 | 33.25 | 29.72 | 43.49 | 44.23 | |
| DOH | days | 10.78 | 10.98 | 12.28 | 8.39 | 8.25 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 33.85
= 10.78
The analysis of Api Group Corp’s days of inventory on hand (DOH) over the specified period reveals several noteworthy trends. At the close of 2020, the DOH stood at approximately 8.25 days, indicating an efficient inventory management period with quick turnover relative to sales. In 2021, this figure experienced a slight increase to 8.39 days, suggesting a marginal extension in inventory holding relative to sales volume.
However, a significant change was observed by the end of 2022, when the DOH rose sharply to 12.28 days. This increase reflects a notable slowdown in inventory turnover, potentially attributable to factors such as increased inventory levels, slower sales, or strategic changes in inventory management practices during that year. The elevated DOH in 2022 suggests a period where inventory remained on hand longer, possibly impacting working capital and operational efficiency.
Moving into 2023, the DOH decreased to 10.98 days, indicating a partial improvement in inventory turnover. This reduction suggests efforts to optimize inventory levels or respond to changing market conditions, although the DOH remained above the 2021 level, still reflecting longer inventory holding periods relative to pre-2022 levels.
By the end of 2024, the DOH further decreased slightly to 10.78 days. This marginal reduction signals continued efforts to improve inventory management, bringing the company closer to its earlier efficiency benchmarks. Nonetheless, the DOH values across 2022 to 2024 remain elevated compared to 2020 and 2021, pointing to a period of extended inventory holding periods that may impact the company's liquidity and operational agility.
Overall, the data indicates that Api Group Corp experienced a notable spike in inventory holding duration in 2022, followed by a gradual but incomplete recovery in subsequent years. This pattern suggests evolving inventory management strategies or changes in sales dynamics that have affected the company's inventory turnover rate over this period.
Peer comparison
Dec 31, 2024