Meritage Corporation (MTH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.84	0.98	1.03	0.99	1.27
DOH	days	437.08	373.74	353.88	367.20	287.22

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.84
= 437.08

The days of inventory on hand (DOH) for Meritage Corporation have shown a fluctuating trend over the years based on the provided data.

As of December 31, 2020, the DOH was reported as 287.22 days, indicating that, on average, the company holds its inventory for approximately 287 days before selling it.

By December 31, 2021, the DOH increased to 367.20 days, suggesting that the company's inventory turnover slowed down, possibly indicating either inefficient inventory management or changes in the sales cycle.

The DOH decreased slightly to 353.88 days by December 31, 2022, possibly as a result of improved inventory management practices or changes in production processes.

However, by December 31, 2023, the DOH increased once again to 373.74 days, potentially signaling challenges in inventory control or changes in market demand affecting the sales patterns.

The trend continued to rise as of December 31, 2024, with a DOH of 437.08 days, indicating a significant increase in the time it takes to sell inventory, which could potentially lead to higher carrying costs and liquidity challenges for the company.

Overall, the fluctuating trend in the DOH for Meritage Corporation suggests the need for a closer examination of its inventory management practices to optimize efficiency, control costs, and improve overall operational performance.