Green Brick Partners Inc (GRBK)

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		0.72	0.70	0.70	0.73	0.80	0.85	0.88	0.93	0.87	0.87	0.90	0.87	0.86	0.76	0.77	0.82	0.88	0.94	0.92	0.85
DOH	days	506.40	525.10	518.67	502.60	454.75	430.63	415.38	392.45	420.55	421.72	404.99	421.13	422.13	480.19	476.95	446.61	415.81	388.31	397.72	430.34

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.72
= 506.40

The days of inventory on hand (DOH) is a measure that indicates how many days, on average, a company holds its inventory before it is sold. A lower DOH value generally indicates better inventory management efficiency, as it suggests that inventory turnover is high and the company is not holding excess inventory.

Analyzing the data for Green Brick Partners Inc from March 31, 2020, to December 31, 2024, we can observe fluctuations in the DOH metric. The DOH started at 430.34 days on March 31, 2020, and fluctuated over the following years, reaching its lowest point of 392.45 days on March 31, 2023. This decrease in DOH suggests improved inventory management efficiency during this period.

However, from June 30, 2023, to December 31, 2024, the DOH experienced an upward trend, reaching its peak of 525.10 days on September 30, 2024. This increase in DOH could indicate potential challenges in managing inventory levels effectively during this period.

It is important for Green Brick Partners Inc to closely monitor its inventory management practices to ensure optimal inventory turnover and minimize holding costs. By analyzing the DOH metric and identifying trends, the company can make informed decisions to improve operational efficiency and profitability.