Dorman Products Inc (DORM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.74	2.11	2.26	3.30	3.24
DOH	days	133.17	173.38	161.81	110.58	112.52

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.74
= 133.17

Over the past five years, Dorman Products Inc has demonstrated varying levels of efficiency in managing its inventory. The days of inventory on hand (DOH) ratio measures how long, on average, it takes for the company to sell its inventory.

In 2019, Dorman had an average of 157.32 days of inventory on hand, indicating that it took approximately 5 months to sell its inventory. This ratio increased to 153.65 days in 2020, suggesting an improvement in inventory management efficiency, as it took slightly less time to sell inventory.

However, in 2021, the DOH ratio jumped to 220.07 days, signifying a significant increase in the time taken to sell inventory, which may indicate potential issues with inventory control or sales volumes. This trend continued in 2022, with the DOH ratio further increasing to 235.96 days, indicating a worsening efficiency in managing inventory levels.

In the most recent year, 2023, Dorman managed to reduce the DOH ratio to 186.96 days, potentially signaling an improvement in inventory management compared to the previous year. However, it is still higher than the levels seen in 2019 and 2020.

Overall, Dorman's days of inventory on hand ratio has shown fluctuations over the past five years, with a noticeable increase in recent years that may warrant closer scrutiny to ensure optimal inventory management practices are maintained.