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.