Installed Building Products Inc (IBP)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 14.89 | 13.32 | 12.55 | 19.58 | 18.88 | |
| DOH | days | 24.51 | 27.41 | 29.09 | 18.65 | 19.33 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.89
= 24.51
Installed Building Products Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The DOH was 32.16 days as of December 31, 2023, showing a decrease from 35.00 days in 2022. This indicates that the company was able to manage its inventory more efficiently in 2023 compared to the previous year.
Looking further back, the trend reveals that the company had a DOH of 37.86 days in 2021, which decreased to 24.64 days in 2020, and then slightly increased to 25.29 days in 2019. This fluctuation suggests potential changes in the company's inventory management practices and efficiency over the years.
Overall, the decreasing trend in DOH from 2021 to 2023 indicates that Installed Building Products Inc has been able to optimize its inventory levels and turnover, potentially leading to improved liquidity and operational efficiency. However, it is important to further analyze the factors contributing to these changes to assess the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2023