KAR Auction Services Inc (KAR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 53.83 | 50.38 | 21.34 | |
| DOH | days | — | — | 6.78 | 7.24 | 17.10 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The days of inventory on hand (DOH) for KAR Auction Services Inc has seen a significant improvement over the years. In December 31, 2020, the company held inventory for an average of 17.10 days, indicating a relatively high level of inventory being held. However, in December 31, 2021, this metric decreased to 7.24 days, suggesting a more efficient management of inventory.
The trend continued in the following years, with the DOH further dropping to 6.78 days by December 31, 2022. This indicates a continued improvement in inventory management efficiency. However, the data for December 31, 2023 and December 31, 2024 is not available, possibly due to the unavailability of the figures or a change in reporting methodology.
Overall, the decreasing trend in the DOH metric for KAR Auction Services Inc reflects a positive shift towards more effective inventory management, potentially leading to lower holding costs, reduced risk of inventory obsolescence, and improved cash flow management. However, it would be beneficial to have more up-to-date data to assess the company's current inventory efficiency.
Peer comparison
Dec 31, 2024