Healthcare Services Group Inc (HCSG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 88.41 | 77.53 | 61.22 | 52.15 | 48.39 | |
| DOH | days | 4.13 | 4.71 | 5.96 | 7.00 | 7.54 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 88.41
= 4.13
The days of inventory on hand (DOH) for Healthcare Services Group, Inc. has shown a decreasing trend over the past five years, indicating efficiency in managing its inventory levels. The company has been able to lower the number of days it holds inventory before selling it, which can lead to cost savings and improved cash flow. In particular, the decrease from 8.26 days in 2019 to 4.63 days in 2023 is a significant improvement.
A lower DOH implies that the company is selling its inventory at a faster rate, which could suggest strong demand for its products or effective inventory management practices. This can potentially enhance the company's overall profitability and liquidity position.
Overall, the decreasing trend in DOH for Healthcare Services Group, Inc. reflects positively on its operational efficiency and effectiveness in managing its inventory levels.