Grid Dynamics Holdings Inc (GDYN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		—	—	—	—	—	13.62	12.27	16.62	—	21.00	—	31.49	211.56	147.27	80.68	95.96	84.85	62.95	80.07	218.80
DOH	days	—	—	—	—	—	26.80	29.75	21.97	—	17.38	—	11.59	1.73	2.48	4.52	3.80	4.30	5.80	4.56	1.67

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Days of Inventory on Hand (DOH) is a financial ratio that measures how efficiently a company manages its inventory by indicating the number of days it takes for the company to sell its entire inventory. A low DOH suggests that the company is effectively managing its inventory, while a high DOH may indicate overstocking, slow-moving inventory, or potential obsolescence issues.

Analyzing the DOH trend for Grid Dynamics Holdings Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's inventory management efficiency.

The DOH started at a relatively low 1.67 days on March 31, 2020, indicating efficient inventory turnover. However, the DOH increased to 4.56 days by June 30, 2020, suggesting a potential slowdown in inventory turnover. This trend continued with further increases in DOH to 11.59 days on March 31, 2022, and significant peaks of 29.75 days on June 30, 2023, and 26.80 days on September 30, 2023.

The peak values of DOH in 2023 indicate potential inventory management challenges such as overstocking or slow sales. This could tie up the company's capital in excess inventory, leading to increased carrying costs and potential write-offs due to obsolescence.

It is important for Grid Dynamics Holdings Inc to analyze and address the reasons behind the high DOH values to optimize inventory levels, improve cash flow, and maintain profitability. Regular monitoring of DOH can help the company make informed decisions regarding inventory purchasing, production, and sales strategies to enhance operational efficiency and financial performance.