Dorman Products Inc (DORM)

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 2.53 2.67 2.51 2.26 2.11 2.18 2.22 2.32 2.25 2.32 2.95 2.96 3.30 3.35 3.34 3.59 3.24 3.22 3.03 2.96
DOH days 144.04 136.68 145.21 161.17 173.38 167.21 164.22 157.50 162.04 157.59 123.73 123.40 110.58 109.11 109.29 101.59 112.68 113.39 120.26 123.48

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.53
= 144.04

The days of inventory on hand (DOH) ratio for Dorman Products Inc has displayed some fluctuations over the past eight quarters. It indicates the number of days it takes for the company to sell its inventory, with a lower number suggesting a more efficient inventory management.

In Q4 2023, the DOH was 186.96 days, showing a slight increase from the previous quarter. This suggests that the company held its inventory for a relatively longer period compared to Q3 2023, which had a DOH of 177.31 days.

Looking further back, there was a noticeable decrease in DOH from Q4 2022 (235.96 days) to Q1 2023 (204.98 days), indicating an improvement in inventory turnover efficiency. However, the ratio has been fluctuating within a range, without a clear trend over the observed period.

It is important for Dorman Products Inc to further analyze the reasons behind these fluctuations and work towards maintaining a balance between stocking enough inventory to meet demand and avoiding excess inventory that could tie up capital and impact profitability.