Comfort Systems USA Inc (FIX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 64.33 | 96.26 | 114.88 | 171.44 | 210.22 | |
| DOH | days | 5.67 | 3.79 | 3.18 | 2.13 | 1.74 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 64.33
= 5.67
Comfort Systems USA, Inc.'s days of inventory on hand (DOH) has exhibited an increasing trend over the past five years. The company's inventory holding period increased from 1.74 days as of December 31, 2019, to 5.67 days as of December 31, 2023. This suggests that, on average, the company held its inventory for a longer period in 2023 compared to previous years.
The increasing trend in DOH may indicate potential inventory management challenges for Comfort Systems USA, Inc. It could imply that the company is either experiencing difficulties in efficiently managing its inventory levels or facing slower inventory turnover, which may tie up working capital and lead to higher carrying costs.
Further analysis and comparison with industry peers or historical averages could provide additional insights into the reasons behind the increasing DOH and help assess the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2023