Installed Building Products Inc (IBP)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 14.87 | 15.01 | 14.80 | 14.13 | 13.32 | 12.27 | 10.73 | 11.97 | 12.53 | 14.54 | 16.45 | 18.05 | 19.58 | 20.92 | 21.01 | 19.62 | 18.80 | 21.43 | 20.73 | 21.24 | |
| DOH | days | 24.55 | 24.31 | 24.66 | 25.83 | 27.40 | 29.75 | 34.00 | 30.50 | 29.12 | 25.10 | 22.19 | 20.22 | 18.65 | 17.45 | 17.37 | 18.60 | 19.41 | 17.03 | 17.61 | 17.18 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.87
= 24.55
Installed Building Products Inc's days of inventory on hand (DOH) has shown a declining trend over the past eight quarters, indicating an improvement in managing inventory levels. In Q4 2023, the company held inventory for an average of 32.16 days, which was slightly higher compared to the previous quarter's 31.64 days. However, this figure has decreased significantly from 35.00 days in Q4 2022.
The decreasing trend in DOH suggests that Installed Building Products Inc has been more efficient in managing its inventory levels, possibly by better forecasting demand, optimizing production processes, or implementing effective inventory control measures. Lower DOH can help reduce carrying costs, minimize the risk of inventory obsolescence, and improve cash flow by freeing up working capital.
Overall, the improving trend in the company's days of inventory on hand reflects positively on its operational efficiency and ability to adapt to changing market demand, which can ultimately lead to enhanced profitability and financial performance.
Peer comparison
Dec 31, 2023