Topbuild Corp (BLD)
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 | 11.41 | 11.73 | 11.59 | 11.90 | 12.24 | 12.40 | 11.46 | 10.42 | 9.89 | 9.44 | 8.92 | 8.91 | 8.80 | 13.63 | 14.75 | 15.19 | 15.04 | 16.73 | 16.22 | 15.77 | |
| DOH | days | 32.00 | 31.12 | 31.49 | 30.67 | 29.82 | 29.44 | 31.86 | 35.04 | 36.91 | 38.67 | 40.91 | 40.97 | 41.48 | 26.77 | 24.75 | 24.03 | 24.28 | 21.82 | 22.50 | 23.15 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.41
= 32.00
The days of inventory on hand (DOH) for Topbuild Corp has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2021, the DOH remained relatively stable, hovering around the mid-20s range, indicating that the company was able to turn over its inventory efficiently within approximately one month.
However, starting from March 31, 2022, the DOH began to increase significantly, reaching a peak of 41.48 days on December 31, 2021. This prolonged period indicates that Topbuild Corp is taking longer to sell its inventory, which could lead to higher holding costs and potential obsolescence risks.
The company managed to reduce its DOH slightly by June 30, 2023, but the metric still remained elevated compared to previous years. Over the following periods, Topbuild Corp continued to make improvements in managing its inventory, with the DOH gradually decreasing to around 30 days by December 31, 2024.
In conclusion, Topbuild Corp experienced a significant increase in its DOH starting from March 2022, indicating potential challenges in inventory management. However, the company has made strides in improving this metric and has shown a trend towards more efficient inventory turnover in recent quarters. This suggests a positive effort to optimize inventory levels and reduce holding costs.