DXP Enterprises Inc (DXPE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.05 | 13.83 | 10.82 | 1.18 | 9.40 | |
| DOH | days | 24.25 | 26.39 | 33.74 | 310.10 | 38.83 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.05
= 24.25
The Days of Inventory on Hand (DOH) for DXP Enterprises Inc has shown a fluctuating trend over the past five years. In 2023, the DOH decreased to 24.25 days from 26.39 days in 2022. This indicates that the company is managing its inventory more efficiently, taking fewer days to sell its inventory on hand.
Compared to 2021 when the DOH was 33.74 days, the reduction in 2023 is significant, demonstrating a positive trend in inventory management. However, it is worth noting that in 2020, the company had an unusually high DOH of 310.10 days, indicating possible inventory management issues or disruptions in the supply chain.
Overall, the decreasing trend in DOH from 2021 to 2023 suggests that DXP Enterprises Inc has improved its inventory turnover efficiency, which can potentially lead to cost savings and improved cash flow.
Peer comparison
Dec 31, 2023