Archrock Inc (AROC)
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 | 7.02 | 6.49 | 6.10 | 6.31 | 6.45 | 6.27 | 6.57 | 6.63 | 6.59 | 7.19 | 7.07 | 7.97 | 10.42 | 8.58 | 8.56 | 8.01 | 4.92 | 4.47 | 3.08 | 1.59 | |
| DOH | days | 51.96 | 56.24 | 59.88 | 57.85 | 56.61 | 58.23 | 55.55 | 55.04 | 55.38 | 50.74 | 51.61 | 45.79 | 35.03 | 42.54 | 42.64 | 45.56 | 74.15 | 81.61 | 118.56 | 230.12 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.02
= 51.96
The days of inventory on hand (DOH) for Archrock Inc have shown a fluctuating trend over the past eight quarters. In Q4 2023, the company held inventory for approximately 66.46 days, showing a decrease from the previous quarter's 72.05 days. However, compared to Q1 2023, the DOH was slightly higher.
Looking at the broader trend, there has been some variability in the DOH metric over the past two years. In general, the company seems to have been able to manage its inventory levels more efficiently in the later part of 2022 and early 2023, as indicated by lower DOH figures.
A lower DOH generally suggests better inventory management, as it means the company is selling its inventory more quickly. Conversely, a higher DOH may indicate excess or slow-moving inventory, which could tie up capital and impact profitability.
It is essential for Archrock Inc to continuously monitor its inventory levels and adjust its production and procurement strategies accordingly to optimize working capital and overall operational efficiency.
Peer comparison
Dec 31, 2023