Deluxe Corporation (DLX)
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 | 27.32 | 25.25 | 26.52 | 26.63 | 24.46 | 21.08 | 18.93 | 19.17 | 19.75 | 22.65 | 27.00 | 27.66 | 25.32 | 23.23 | 22.59 | 19.05 | 18.21 | 14.93 | 16.48 | 19.29 | |
| DOH | days | 13.36 | 14.45 | 13.76 | 13.71 | 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 | 24.45 | 22.15 | 18.92 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 27.32
= 13.36
To analyze Deluxe Corporation's days of inventory on hand (DOH) from March 31, 2020, to December 31, 2024, we observe a general trend of decreasing DOH over the period.
The DOH decreased from 18.92 days on March 31, 2020, to 13.36 days on December 31, 2024, which suggests that the company has been more efficient in managing its inventory levels and converting inventory into sales over time.
Specifically, we see fluctuations in the DOH metric over the quarters, with some periods showing slight increases, such as in September 30, 2020, and September 30, 2022. However, the overall trend points towards a decreasing DOH, indicating that Deluxe Corporation has likely improved its inventory management practices, leading to faster turnover of inventory.
A decreasing DOH can be a positive indicator as it implies that the company is selling inventory faster or managing its inventory levels more effectively. However, it is essential to strike a balance to ensure that the company does not face stockouts or supply chain disruptions due to excessively low inventory levels.
In conclusion, the trend of decreasing DOH for Deluxe Corporation suggests that the company has been successful in enhancing its inventory management efficiency and could potentially lead to improved financial performance in the future.