CDW Corp (CDW)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 27.09 25.03 23.82 18.60 20.08
DOH days 13.47 14.58 15.32 19.62 18.18

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 27.09
= 13.47

The Days of Inventory on Hand (DOH) for CDW Corp has shown a declining trend over the past five years, decreasing from 18.18 days as of December 31, 2020, to 13.47 days as of December 31, 2024. This indicates that the company has been more efficient in managing its inventory levels and converting inventory into sales within a shorter period.

A decreasing DOH is generally a positive sign as it suggests that CDW Corp is effectively managing its inventories by either reducing excess stock levels, improving inventory turnover, or streamlining its supply chain processes. A lower DOH value also implies better liquidity, as the company is holding less inventory for sale, which could potentially free up cash for other operations or investments.

However, it is important to note that a very low DOH value might also indicate the risk of stockouts or shortages in the future if not managed carefully. CDW Corp should continue to monitor its inventory levels closely to ensure they align with demand patterns while maintaining a balance between efficient inventory management and meeting customer needs.