Blackbaud Inc (BLKB)

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		—	—	—	—	—	1.40	0.66	1.39	0.72	1.44	1.07	1.66	0.74	1.33	0.99	1.67	0.70	2.09	1.01	1.83
DOH	days	—	—	—	—	—	261.54	554.62	263.07	507.17	254.13	341.30	220.33	491.35	275.19	369.12	218.32	519.47	174.90	359.69	199.93

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The days of inventory on hand (DOH) metric reflects the average number of days a company takes to sell its inventory. A lower DOH is generally considered more favorable as it indicates efficient inventory management.

Analyzing the DOH trend for Blackbaud Inc from March 31, 2020, to June 30, 2024, reveals fluctuations in inventory management efficiency. The DOH ranged from a low of 174.90 days on September 30, 2020, to a high of 554.62 days on June 30, 2023. Such a wide range suggests potential challenges in managing inventory levels efficiently during the period.

Specifically, the DOH increased significantly in the latter half of 2020 and peaked in June 2023 before showing a slight improvement by September 2023. The variability in DOH throughout the period may indicate issues such as excess inventory, slow sales, or ineffective inventory control mechanisms.

It is vital for Blackbaud Inc to closely monitor and manage its inventory levels to optimize working capital and avoid potential obsolescence or carrying costs associated with excessive inventory. Continued volatility in the DOH metric could impact the company's profitability and cash flow. Additional analysis and action may be required to address any underlying issues impacting inventory management efficiency.