Topbuild Corp (BLD)
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 | 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 | 16.01 | 15.31 | 14.13 | 12.42 | |
| DOH | days | 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 | 22.79 | 23.84 | 25.83 | 29.39 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.24
= 29.82
TopBuild Corp's Days of Inventory on Hand (DOH) has been fluctuating over the past eight quarters. The variation in DOH indicates the efficiency of the company in managing its inventory levels.
From Q1 2022 to Q4 2023, the DOH decreased from 50.77 days to 37.07 days. This significant reduction suggests that TopBuild has been able to streamline its inventory management processes and improve inventory turnover efficiency.
The downward trend in DOH signals that the company may have been successful in optimizing its inventory levels, resulting in reduced holding costs and potential risks associated with excess inventory.
It is important to monitor future changes in the DOH ratio to ensure that the company can sustain its efficient inventory management practices and continue to meet customer demand effectively.