Deluxe Corporation (DLX)
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 | 24.46 | 21.08 | 18.93 | 19.17 | 19.75 | 22.64 | 27.00 | 27.66 | 25.32 | 23.23 | 22.59 | 19.05 | 18.21 | 14.77 | 16.31 | 19.10 | 20.36 | 19.46 | 17.68 | 17.82 | |
| DOH | days | 14.92 | 17.32 | 19.28 | 19.04 | 18.48 | 16.12 | 13.52 | 13.20 | 14.42 | 15.71 | 16.16 | 19.16 | 20.04 | 24.72 | 22.38 | 19.11 | 17.92 | 18.76 | 20.65 | 20.49 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.46
= 14.92
To assess Deluxe Corp.'s efficiency in managing its inventory, we analyze the days of inventory on hand (DOH) ratio over the past eight quarters. The trend indicates a fluctuation in inventory management efficiency.
In Q1 2022, the company held inventory for 13.20 days, with a subsequent increase to 13.52 days in Q2 2022. The ratio then rose to 16.12 days in Q3 2022 before reaching 18.48 days in Q4 2022. This suggests a worsening trend in inventory management efficiency during the latter half of 2022.
However, the trend reversed in 2023 as the ratio decreased to 19.04 days in Q1 2023 and improved further to 19.28 days in Q2 2023. This positive trend was followed by a significant decrease to 17.32 days in Q3 2023 and a further drop to 14.92 days in Q4 2023. This indicates an enhanced efficiency in managing inventory in 2023.
Overall, the variability in Deluxe Corp.'s DOH ratio highlights the company's efforts to adjust and optimize its inventory management practices. Further monitoring and analysis of this ratio will be important to ensure the company maintains efficient control over its inventory levels in the future.