Chemed Corp (CHE)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 192.47 122.28 133.36 135.47 194.25
DOH days 1.90 2.98 2.74 2.69 1.88

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 192.47
= 1.90

The days of inventory on hand (DOH) for Chemed Corp have shown fluctuations over the past five years. In December 2020, the company held inventory for an average of 1.88 days before selling it, indicating efficient inventory management. However, this number increased to 2.69 days by December 2021, suggesting a slight slowdown in inventory turnover.

By December 2022 and 2023, the DOH continued to rise to 2.74 days and 2.98 days, respectively, potentially indicating an increase in inventory levels or a decrease in sales. It is important for Chemed Corp to monitor and potentially optimize its inventory management during these periods to prevent overstocking or obsolescence.

The DOH dropped back to 1.90 days by December 2024, returning closer to the initial levels seen in 2020. This decrease could be a positive sign of improved inventory turnover efficiency. Overall, Chemed Corp should continue to assess and adjust its inventory practices to maintain a balance between stocking enough inventory to meet demand while avoiding excess holding costs.