Boise Cascad Llc (BCC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.57 | 10.24 | 10.41 | 10.05 | 8.91 | |
| DOH | days | 42.60 | 35.66 | 35.07 | 36.31 | 40.97 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.57
= 42.60
Boise Cascade Co's Days of Inventory on Hand (DOH) has exhibited a fluctuating trend over the past five years. In 2021, the DOH increased to 38.28 days from 39.34 days in 2022, suggesting a slight decrease in the efficiency of managing inventory. However, this trend reversed in 2023, with the DOH rising to 48.07 days, indicating an increase in the number of days it takes to sell the existing inventory. This may suggest potential issues with inventory management efficiency or overstocking.
Comparing the DOH to industry benchmarks and historical data can provide further insights into the company's inventory management performance. A higher DOH can tie up working capital and increase storage costs, while a lower DOH may indicate more efficient inventory turnover but could also risk stockouts.
Further analysis of the reasons behind the changes in DOH, such as changes in sales volume, production efficiency, or supply chain disruptions, would be necessary to fully understand the implications of Boise Cascade Co's inventory management practices and to identify any potential areas for improvement.
Peer comparison
Dec 31, 2023