PC Connection Inc (CNXN)
Days of inventory on hand (DOH)
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 28.59 | 23.75 | 19.52 | 21.53 | 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 | |
| DOH | days | 12.77 | 15.37 | 18.70 | 16.95 | 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 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 28.59
= 12.77
PC Connection Inc has shown fluctuations in its Days of Inventory on Hand (DOH) over the years. The trend indicates a gradual increase in DOH from March 31, 2020, to December 31, 2021, with slight fluctuations in between. The DOH peaked at 29.09 days on March 31, 2022, and gradually decreased thereafter.
From June 30, 2022, to December 31, 2024, the company experienced a significant drop in its DOH, reaching the lowest value of 12.77 days on December 31, 2024. This decrease could signify improved inventory management efficiency, possibly due to better forecasting, streamlined processes, or inventory turnover strategies.
Overall, a lower DOH indicates that PC Connection Inc is holding less inventory relative to its sales, which can lead to reduced carrying costs and potential for improved liquidity. It suggests that the company is managing its inventory levels efficiently, ensuring that it has the right amount of inventory to meet customer demand without excess stockpiling. This leaner approach to inventory management can result in better financial performance and operational effectiveness for the company.
Peer comparison
Dec 31, 2024