National HealthCare Corporation (NHC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 97.26 | 105.04 | 104.91 | 81.42 | 77.82 | |
| DOH | days | 3.75 | 3.48 | 3.48 | 4.48 | 4.69 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 97.26
= 3.75
The days of inventory on hand (DOH) for National HealthCare Corporation have shown a decreasing trend from 4.69 days as of December 31, 2020, to 3.75 days as of December 31, 2024. This indicates that the company has been more efficient in managing its inventory levels over the years, which can be a positive sign of effective inventory management. The reduction in DOH signifies that the company is selling its inventory at a faster rate or holding lower levels of inventory, which can lead to cost savings and improved cash flow. It is important for National HealthCare Corporation to maintain an optimal balance in inventory management to ensure adequate supply for operations while minimizing holding costs.
Peer comparison
Dec 31, 2024