PC Connection Inc (CNXN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 28.59 | 22.21 | 14.45 | 13.60 | 17.97 | |
| DOH | days | 12.77 | 16.44 | 25.25 | 26.85 | 20.32 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 28.59
= 12.77
To analyze PC Connection Inc's days of inventory on hand (DOH), we observe the trend over the past five years. The DOH figures indicate the number of days, on average, that the company holds its inventory before selling it.
From December 31, 2020, to December 31, 2024, the trend in DOH for PC Connection Inc shows a decreasing pattern, implying that the company has been more efficient in managing its inventory levels. The decrease from 20.32 days in 2020 to 12.77 days in 2024 indicates that the company has been able to turn its inventory into sales more swiftly over the years.
A lower DOH suggests that PC Connection Inc has been able to manage its inventory effectively, potentially reducing carrying costs and the risk of obsolete inventory. This improvement may be attributed to better inventory forecasting, efficient supply chain management, or streamlined inventory processes.
Overall, the decreasing trend in days of inventory on hand for PC Connection Inc indicates positive operational efficiency in managing its inventory levels, which can have favorable implications for the company's financial performance and profitability.
Peer comparison
Dec 31, 2024