Healthcare Services Group Inc (HCSG)
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 | 86.56 | 83.16 | 80.10 | 80.12 | 78.72 | 76.84 | 73.78 | 73.43 | 70.70 | 66.34 | 63.51 | 58.49 | 54.39 | 52.03 | 49.65 | 49.43 | 47.25 | 46.70 | 46.32 | 42.58 | |
| DOH | days | 4.22 | 4.39 | 4.56 | 4.56 | 4.64 | 4.75 | 4.95 | 4.97 | 5.16 | 5.50 | 5.75 | 6.24 | 6.71 | 7.01 | 7.35 | 7.38 | 7.73 | 7.82 | 7.88 | 8.57 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 86.56
= 4.22
The days of inventory on hand (DOH) for Healthcare Services Group Inc have shown a declining trend from 8.57 days as of March 31, 2020, to 4.22 days as of December 31, 2024. This indicates that the company is managing its inventory more efficiently over the period under review.
A decreasing trend in DOH reflects that the company is selling its inventory at a faster rate compared to previous periods. A lower DOH is generally considered positive as it implies that the company has less capital tied up in inventory and is turning over its inventory more quickly.
The decreasing DOH could be attributed to various factors such as improved inventory management practices, better demand forecasting, efficient supply chain processes, or shifts in the company's product mix. Overall, a declining DOH can signify better liquidity, improved operational efficiency, and potentially higher profitability as a result of reduced carrying costs and inventory obsolescence risk.