Installed Building Products Inc (IBP)
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 | 10.11 | 10.73 | 10.91 | 10.98 | 11.42 | 11.54 | 11.48 | 11.03 | 10.43 | 9.61 | 8.35 | 9.26 | 9.64 | 11.08 | 12.50 | 13.65 | 14.81 | 15.92 | 16.02 | 15.02 | |
| DOH | days | 36.09 | 34.03 | 33.45 | 33.24 | 31.97 | 31.64 | 31.80 | 33.10 | 35.00 | 37.99 | 43.71 | 39.40 | 37.86 | 32.95 | 29.21 | 26.74 | 24.64 | 22.93 | 22.79 | 24.30 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.11
= 36.09
Installed Building Products Inc days of inventory on hand (DOH) has shown a general increasing trend from March 31, 2020, to December 31, 2024. The DOH increased from 24.30 days on March 31, 2020, to a peak of 43.71 days on June 30, 2022, before slightly declining to 36.09 days on December 31, 2024.
The increasing trend in DOH indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in inventory management or a slowdown in sales. A higher DOH value can tie up more capital in inventory, leading to potential liquidity challenges and increased carrying costs.
It is essential for Installed Building Products Inc to closely monitor its inventory levels and optimize inventory turnover to maintain healthy liquidity and profitability. This trend in DOH may require further investigation to identify the root causes and implement strategies to improve inventory management efficiency.
Peer comparison
Dec 31, 2024