Dorman Products Inc (DORM)

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		1.70	1.80	1.94	1.96	1.96	2.06	1.97	1.78	1.55	1.61	1.64	1.71	1.66	1.69	2.15	2.13	2.38	2.40	2.38	2.59
DOH	days	214.83	202.96	188.49	186.27	186.14	177.31	185.54	204.98	235.96	226.47	222.23	213.30	220.07	215.47	169.85	171.15	153.65	151.82	153.11	141.15

December 31, 2024 calculation

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

The days of inventory on hand (DOH) for Dorman Products Inc have fluctuated over the period under review.

The trend indicates an increasing trend from March 31, 2020, reaching a peak of 235.96 days on December 31, 2022. This suggests that the company may be holding more inventory relative to its sales during this period.

Subsequently, there was a slight decrease in DOH by the end of March 31, 2023, followed by a more significant decline through June 30, 2024. This reduction in DOH may indicate improved inventory management efficiency, potentially due to better demand forecasting or inventory control strategies.

However, the DOH increased slightly by the end of September 30, 2024, and further rose to 214.83 days by December 31, 2024. This increase may warrant a closer examination of the company's inventory management practices to ensure optimal levels that balance the need to meet customer demand with the cost of holding excess inventory.

Overall, the trend in DOH for Dorman Products Inc reflects fluctuations in inventory management efficiency over the period analyzed, highlighting the importance of closely monitoring and optimizing inventory levels to maximize operational performance and profitability.