DXP Enterprises Inc (DXPE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 12.08 | 11.30 | 10.44 | 7.78 | 7.48 | |
| DOH | days | 30.21 | 32.29 | 34.95 | 46.89 | 48.80 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.08
= 30.21
The days of inventory on hand (DOH) for DXP Enterprises Inc have shown a decreasing trend over the past five years, indicating the company's efficiency in managing its inventory.
As of December 31, 2020, the DOH was reported at 48.80 days, which has gradually decreased to 30.21 days by December 31, 2024. This decline implies that the company is holding less inventory on average over the years, potentially leading to lower carrying costs and better liquidity.
A lower DOH figure suggests that DXP Enterprises Inc is able to turn over its inventory more quickly. By reducing the time it takes to sell inventory, the company can free up working capital that can be reinvested or used to fund other operations.
Overall, the decreasing trend in DOH reflects positively on DXP Enterprises Inc's inventory management efficiency and could indicate improved operational performance and financial health over the years.
Peer comparison
Dec 31, 2024