Chemed Corp (CHE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 155.85 | 169.27 | 172.74 | 242.20 | 218.59 | |
| DOH | days | 2.34 | 2.16 | 2.11 | 1.51 | 1.67 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 155.85
= 2.34
Chemed Corp.'s days of inventory on hand (DOH) has shown a generally increasing trend over the past five years, from 2.06 days in 2019 to 2.99 days in 2023. This indicates that, on average, Chemed Corp. held its inventory for a longer period before selling it.
A higher DOH could suggest potential issues such as overstocking or slowing sales, which may tie up cash in inventory and lead to higher carrying costs. On the other hand, a lower DOH could indicate efficient inventory management and quick turnover of goods, potentially boosting liquidity and profitability.
Further analysis and comparison with industry averages or competitors would be necessary to evaluate Chemed Corp.'s inventory management performance and its implications for the company's overall financial health.
Peer comparison
Dec 31, 2023