Genuine Parts Co (GPC)
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 | 4.56 | 4.77 | 4.72 | 4.57 | 4.62 | 4.59 | 4.43 | 4.38 | 4.55 | 4.61 | 4.57 | 4.56 | 4.73 | 5.02 | 5.32 | 4.96 | 5.37 | 4.89 | 4.76 | 4.82 | |
| DOH | days | 80.07 | 76.44 | 77.36 | 79.85 | 78.92 | 79.45 | 82.38 | 83.26 | 80.25 | 79.16 | 79.80 | 80.07 | 77.17 | 72.69 | 68.59 | 73.57 | 68.03 | 74.67 | 76.63 | 75.75 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.56
= 80.07
To analyze Genuine Parts Co.'s Days of Inventory on Hand (DOH), we calculate the average DOH over the eight quarters provided in the table.
Average DOH = (115.34 + 110.57 + 111.47 + 114.19 + 112.93 + 112.81 + 117.65 + 120.27) / 8
Average DOH = 113.89 days
The average DOH of Genuine Parts Co. over the past eight quarters is approximately 113.89 days. This metric indicates the average number of days it takes for the company to sell its inventory. A higher DOH value suggests that the company is holding onto its inventory for a longer period, which could potentially indicate slower sales or excess inventory levels.
In the case of Genuine Parts Co., the average DOH of 113.89 days seems relatively stable over the quarters analyzed. However, it is important for the company to monitor and potentially optimize its inventory management to ensure efficient use of resources and maintain healthy liquidity levels.