Deluxe Corporation (DLX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 24.46 | 19.75 | 25.32 | 18.21 | 20.36 | |
| DOH | days | 14.92 | 18.48 | 14.42 | 20.04 | 17.92 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.46
= 14.92
To analyze Deluxe Corp.'s days of inventory on hand (DOH) over the past five years, we observe a fluctuating trend.
In 2019, the company held inventory for an average of 17.92 days, which decreased to 20.04 days in 2020, indicating that the company took longer to sell its inventory in 2020 compared to the preceding year.
However, there was an improvement in the company's inventory management in 2021 as the DOH decreased to 14.42 days. This trend was reversed in 2022 when the DOH increased to 18.48 days, suggesting that the company had a slightly higher level of inventory on hand relative to its sales.
The most recent data for 2023 shows a further improvement in inventory management, with the DOH decreasing to 14.92 days. This reduction indicates that Deluxe Corp. has been more efficient in managing its inventory turnover in the latest fiscal year.
Overall, despite some fluctuations, Deluxe Corp. appears to be making efforts to optimize its inventory management practices, as evidenced by the varying levels of DOH observed in the last five years.