Dril-Quip Inc (DRQ)
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 | 1.59 | 1.55 | 1.60 | 1.75 | 1.82 | 1.85 | 1.84 | 1.77 | 1.66 | 1.26 | 1.23 | 1.31 | 1.27 | 1.28 | 1.37 | 1.51 | 1.44 | 1.45 | 1.48 | 1.49 | |
| DOH | days | 230.23 | 236.03 | 227.91 | 208.50 | 200.39 | 196.85 | 198.01 | 206.64 | 219.47 | 289.74 | 295.86 | 278.91 | 287.64 | 284.17 | 267.24 | 242.11 | 253.71 | 251.46 | 246.69 | 245.31 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.59
= 230.23
The days of inventory on hand (DOH) for Dril-Quip, Inc. have shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH stood at 230.23 days, slightly lower than the previous quarter's 236.03 days. This suggests that the company held inventory for approximately 230 days at the current sales rate.
Comparing this with the same quarter in the previous year (Q4 2022), where the DOH was 200.39 days, there has been an increase in the number of days inventory is held. This may indicate a slower inventory turnover rate in the current period compared to the previous year.
Overall, although the DOH has varied over the quarters, it is essential for Dril-Quip, Inc. to closely monitor and manage its inventory levels efficiently to optimize working capital and minimize carrying costs. Additionally, further analysis and comparison with industry benchmarks would provide more insights into the company's inventory management effectiveness.
Peer comparison
Dec 31, 2023