DR Horton Inc (DHI)

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		1.10	1.17	1.10	1.06	1.04	1.06	1.01	1.07	1.12	1.21	1.18	1.23	1.22	1.26	1.19	1.17	1.18	1.22	1.14	1.08
DOH	days	330.78	312.76	333.02	344.31	350.69	344.03	361.35	340.87	324.53	302.27	308.41	296.49	298.13	290.55	305.54	313.16	309.04	300.12	321.19	338.22

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.10
= 330.78

Days of Inventory on Hand (DOH) is a financial metric that measures the average number of days a company holds its inventory before it is sold. A lower DOH indicates that the company is selling its inventory at a faster rate, while a higher DOH suggests slower turnover.

Analyzing D.R. Horton Inc.'s DOH over the past eight quarters, it is observed that there has been fluctuation in the metric. The DOH ranged from a low of 312.76 days to a high of 361.35 days during this period. This variability may indicate changes in the company's inventory management efficiency and sales performance over time.

The trend in the DOH shows an increase in the holding period of inventory from the third quarter of 2022 to the fourth quarter of 2023, with only minor fluctuations. The significant increase from 312.76 days in the third quarter of 2023 to 330.78 days in the fourth quarter of 2023 suggests a potential slowdown in inventory turnover.

It is essential to further investigate the reasons behind this increase in DOH to determine whether it is due to growth in inventory volumes, slowing sales, or other operational factors. Additionally, comparing D.R. Horton Inc.'s DOH to industry benchmarks and its historical performance can provide valuable insights into its inventory management effectiveness and overall operational efficiency.