Mister Car Wash, Inc. Common Stock (MCW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 62.77 | 69.24 | 59.80 | 42.92 | 33.93 | 29.90 | 32.78 | 32.78 | 29.26 | 29.84 | 36.67 | 39.85 | 41.86 | 45.30 | 37.76 | 30.71 | 30.24 | |
| DOH | days | 5.81 | 5.27 | 6.10 | 8.50 | 10.76 | 12.21 | 11.13 | 11.13 | 12.47 | 12.23 | 9.95 | 9.16 | 8.72 | 8.06 | 9.67 | 11.89 | 12.07 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 62.77
= 5.81
Mister Car Wash, Inc.'s days of inventory on hand (DOH) has shown a declining trend over the period reported. The company managed to reduce its DOH from 12.07 days on December 31, 2020, to 5.81 days on December 31, 2024. This indicates that Mister Car Wash, Inc. has been more efficient in managing its inventory, turning over its stock more quickly.
The decreasing trend in DOH suggests that the company may have implemented better inventory management practices, leading to lower holding costs and potential for higher sales. However, a sudden decrease in DOH, such as the significant drop observed from March 31, 2024, to June 30, 2024, from 8.50 days to 6.10 days, may raise questions on whether the company is facing inventory shortages or facing challenges in meeting customer demand.
Overall, the decreasing DOH trend reflects positively on the company's operational efficiency and effectiveness in managing its inventory levels. However, it is important for stakeholders to monitor any fluctuations in DOH to ensure that Mister Car Wash, Inc. maintains a proper balance between inventory levels and customer demand.
Peer comparison
Dec 31, 2024