Liquidity Services Inc (LQDT)

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		15.61	20.13	17.53	13.75	12.15	16.68	13.24	14.45	13.86	14.08	12.13	12.03	16.08	28.98	22.78	20.84	25.93	21.75	5.02	2.08
DOH	days	23.39	18.13	20.83	26.54	30.03	21.88	27.57	25.26	26.33	25.93	30.10	30.34	22.70	12.60	16.02	17.52	14.08	16.78	72.68	175.45

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.61
= 23.39

To analyze Liquidity Services Inc's days of inventory on hand (DOH) over the past few quarters, we observe fluctuations in the metric. In Q1 2024, the DOH stood at 37.16 days, representing an increase from the previous quarter's 28.51 days in Q4 2023. This could indicate a buildup in inventory levels, potentially impacting liquidity and operational efficiency.

Comparing Q4 2023 to Q3 2023, we see a decrease in DOH from 32.44 days to 28.51 days, suggesting a positive trend in inventory management efficiency. However, this improvement was preceded by a slight increase in Q2 2023 to 41.40 days, highlighting potential inconsistencies in inventory control.

A notable rise in DOH was observed in Q1 2023, with the metric reaching 48.41 days, signifying a longer period of inventory turnover. This was followed by a decrease in Q4 2022 to 35.70 days, which aligns with the seasonal nature of certain businesses.

Further back, Q3 2022 saw an increase in DOH to 45.23 days, which then decreased to 41.35 days in Q2 2022. These variations indicate the importance of closely monitoring inventory management practices to optimize cash flow and overall business performance.

Overall, the fluctuations in Liquidity Services Inc's DOH reflect the company's inventory management effectiveness and its ability to balance inventory levels with customer demand. Analyzing trends in this ratio can provide valuable insights into operational efficiency and financial performance.