PC Connection Inc (CNXN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 22.21 | 14.45 | 13.60 | 17.97 | 21.82 | |
| DOH | days | 16.44 | 25.25 | 26.85 | 20.32 | 16.72 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 22.21
= 16.44
The days of inventory on hand (DOH) for PC Connection Inc has shown some fluctuations over the past five years. In 2023, the company had 16.44 days of inventory on hand, which is a significant improvement compared to 2022 and 2021 when the DOH was at 25.25 days and 26.85 days, respectively. This indicates that in 2023, the company managed its inventory more efficiently, reducing the number of days it takes to sell its inventory.
Looking back further, in 2020, the DOH was 20.32 days, slightly higher than in 2023 but lower than in 2022 and 2021. In 2019, the DOH was 16.72 days, somewhat similar to the 2023 figure. Overall, the trend in recent years shows some variability in inventory management effectiveness, with improvements seen in 2023 compared to the previous two years.
The reduction in DOH in 2023 could signify better inventory control, faster turnover of inventory, or more accurate demand forecasting. It is crucial for the company to continue monitoring and optimizing its inventory management practices to ensure efficient operations and profitability.
Peer comparison
Dec 31, 2023