Chemed Corp (CHE)

Days of inventory on hand (DOH)

Mar 31, 2025 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
Inventory turnover 196.92 196.32 159.26 143.70 141.09 123.39 116.44 123.37 131.67 133.36 129.59 126.39 129.56 135.47 162.99 184.22 201.70 194.25 184.27 184.74
DOH days 1.85 1.86 2.29 2.54 2.59 2.96 3.13 2.96 2.77 2.74 2.82 2.89 2.82 2.69 2.24 1.98 1.81 1.88 1.98 1.98

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 196.92
= 1.85

The days of inventory on hand (DOH) for Chemed Corp have shown some fluctuations over the period from June 30, 2020, to March 31, 2025. The DOH indicates how many days, on average, the company holds inventory before selling it.

Initially, the company had a relatively stable DOH around 1.98 days from June 2020 to September 2021. From September 2021 onwards, there was an increasing trend in the DOH, reaching a peak of 3.13 days by September 30, 2023. This increase could indicate either slower inventory turnover or an increase in inventory levels during this period.

However, from September 30, 2023, to March 31, 2025, there was a slight decrease in the DOH, suggesting a possible improvement in inventory management efficiency as the company worked towards reducing excess inventory levels.

Overall, monitoring the days of inventory on hand is crucial for evaluating Chemed Corp's inventory management practices and efficiency in managing working capital. Further analysis of the reasons behind the fluctuations in the DOH can provide valuable insights into the company's operational effectiveness and financial performance.