Deluxe Corporation (DLX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 27.35 | 24.46 | 19.75 | 25.32 | 18.21 | |
| DOH | days | 13.35 | 14.92 | 18.48 | 14.42 | 20.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 27.35
= 13.35
To analyze Deluxe Corporation's days of inventory on hand (DOH) over the past five years, we observe a decreasing trend in the metric.
In December 2020, Deluxe Corporation had inventory that would last approximately 20.04 days based on its sales levels. By December 2024, this figure had declined to 13.35 days, indicating an improvement in inventory management efficiency.
The decreasing trend in DOH suggests that Deluxe Corporation has been able to turn its inventory into sales at a faster rate over the years. This could be a positive sign of effective inventory control, as lower DOH values indicate the company is carrying less excess inventory and is able to sell its products more quickly.
Overall, the declining trend in the days of inventory on hand for Deluxe Corporation implies that the company has been successful in managing its inventory levels efficiently and improving its operational performance in terms of inventory turnover.