Graham Holdings Co (GHC)
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 | 2.92 | 0.51 | 0.12 | 0.04 | -0.03 | -0.55 | -0.36 | -0.23 | -0.10 | -0.10 | -0.07 | 0.23 | 0.49 | -0.21 | -0.39 | -0.66 | -0.92 | -0.46 | -0.40 | -0.57 | |
| DOH | days | 125.07 | 722.31 | 3,098.53 | 8,122.03 | — | — | — | — | — | — | — | 1,617.74 | 741.46 | — | — | — | — | — | — | — |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.92
= 125.07
To analyze Graham Holdings Co.'s days of inventory on hand (DOH) based on the provided data, we observe an increasing trend in DOH over the past eight quarters. In Q4 2022, the company had 25.32 days of inventory on hand, and this figure has steadily increased to 34.96 days in Q4 2023.
The rising trend in DOH suggests that Graham Holdings Co. is carrying inventory for a longer period before it is sold. This could indicate potential inefficiencies in inventory management, leading to higher carrying costs, potentially obsolete inventory, and reduced liquidity.
It is essential for the company to monitor and analyze the reasons behind this increasing trend in DOH to optimize inventory levels, reduce carrying costs, and improve overall operational efficiency. Further investigation into inventory turnover, sales trends, and supply chain management practices may provide insights into addressing the issue of rising days of inventory on hand.
Peer comparison
Dec 31, 2023