PC Connection Inc (CNXN)
Days of inventory on hand (DOH)
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 22.21 | 19.67 | 18.03 | 14.88 | 14.45 | 14.42 | 13.70 | 12.55 | 13.60 | 15.35 | 15.57 | 17.50 | 17.94 | 19.00 | 15.84 | 20.39 | 21.80 | 21.52 | 15.10 | 18.47 | |
| DOH | days | 16.44 | 18.56 | 20.24 | 24.52 | 25.25 | 25.31 | 26.65 | 29.09 | 26.85 | 23.78 | 23.45 | 20.86 | 20.34 | 19.21 | 23.05 | 17.90 | 16.74 | 16.96 | 24.17 | 19.76 |
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 been showing a decreasing trend over the quarters, indicating an improvement in managing inventory levels. In Q4 2023, the DOH was 19.38 days, the lowest it has been in recent quarters. This suggests that the company is able to sell its inventory faster, resulting in lower holding costs and potentially higher inventory turnover.
Comparing this to Q1 2022 where the DOH was 33.56 days, there has been a significant improvement in managing inventory efficiency. This reduction in DOH over time may indicate better inventory management practices, such as more accurate demand forecasting, streamlined supply chain processes, or effective inventory control systems.
A decreasing trend in DOH is generally seen as a positive sign as it implies that the company is becoming more efficient in managing its inventory, which can lead to improved cash flow, profitability, and overall financial performance. It is important to continue monitoring this ratio in future periods to ensure sustained efficiency in inventory management.
Peer comparison
Dec 31, 2023