Dorman Products Inc (DORM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.70	1.95	1.55	1.66	2.38
DOH	days	214.83	186.96	235.96	220.07	153.65

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.70
= 214.83

Dorman Products Inc's days of inventory on hand (DOH) has shown fluctuations over the past five years. The company had 153.65 days of inventory on hand as of December 31, 2020, which increased significantly to 220.07 days by December 31, 2021. This upward trend continued as the DOH increased to 235.96 days by December 31, 2022. However, by December 31, 2023, the DOH decreased to 186.96 days, showing some improvement. Subsequently, by December 31, 2024, the DOH increased again to 214.83 days.

These fluctuations in DOH indicate variations in Dorman Products Inc's inventory management efficiency and liquidity. Higher DOH values suggest that the company is holding onto inventory for a longer period before selling, tying up capital and potentially indicating inefficiencies in inventory management or slower inventory turnover. Conversely, lower DOH values may indicate better inventory management practices, with the company holding less inventory relative to its sales.

Overall, Dorman Products Inc may need to closely monitor its inventory levels and implement strategies to optimize inventory turnover to improve efficiency and profitability.