Liquidity Services Inc (LQDT)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		15.73	18.40	15.15	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
DOH	days	23.20	19.84	24.09	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

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.73
= 23.20

Days of inventory on hand (DOH) for Liquidity Services Inc has fluctuated over the past years, indicating the company's inventory management efficiency.

In the most recent quarter, as of September 30, 2024, the DOH stood at 23.20 days, slightly higher compared to the previous quarter's 19.84 days. This suggests that the company held on to its inventory for a slightly longer period in the latest quarter.

Looking further back, the DOH ranged from 18.13 days to 30.34 days over the past few quarters, with notable peaks in inventory holding observed in March 2023 and March 2021. These peaks may indicate periods of slower inventory turnover or potentially excess inventory levels.

It is essential for Liquidity Services Inc to closely monitor its DOH trend to ensure optimal inventory management practices, striking a balance between having enough inventory to meet demand while avoiding excessive holding costs and potential obsolescence risks. A decreasing trend in DOH over time may suggest improvements in inventory turnover efficiency, while increasing DOH could indicate challenges in managing inventory levels effectively.