Churchill Downs Incorporated (CHDN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 154.81 | 21.55 | 16.60 | 17.90 | 16.05 | |
| DOH | days | 2.36 | 16.94 | 21.99 | 20.39 | 22.74 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 154.81
= 2.36
The days of inventory on hand (DOH) for Churchill Downs Incorporated have shown a declining trend over the past five years, indicating efficient inventory management.
As of December 31, 2020, the company had an inventory holding period of 22.74 days, which decreased to 20.39 days by the end of 2021. In 2022, the DOH increased slightly to 21.99 days before experiencing a significant drop to 16.94 days at the end of 2023. By the end of 2024, the DOH reached its lowest point at 2.36 days, signaling a very efficient inventory turnover.
This declining trend in the days of inventory on hand reflects the company's ability to swiftly convert inventory into sales, reducing holding costs and minimizing the risk of inventory obsolescence. It suggests effective inventory management practices and a proactive approach to optimizing working capital utilization.
Overall, Churchill Downs Incorporated's decreasing DOH figures over the past five years reflect a positive trend in inventory management efficiency, potentially contributing to improved profitability and cash flow for the company.