Patrick Industries Inc (PATK)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.22 | 5.26 | 5.72 | 5.33 | 6.48 | |
| DOH | days | 69.91 | 69.33 | 63.78 | 68.43 | 56.31 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.22
= 69.91
The Days of Inventory on Hand (DOH) for Patrick Industries Inc has shown a fluctuating trend over the past five years. The DOH increased from 56.31 days as of December 31, 2020, to 68.43 days by December 31, 2021, indicating a possible inefficiency in managing inventory levels during that period.
However, there was a slight improvement in inventory management as the DOH decreased to 63.78 days by December 31, 2022. The trend reversed again with a further increase to 69.33 days by December 31, 2023, and a slight uptick to 69.91 days by December 31, 2024.
Overall, a higher DOH value suggests that Patrick Industries Inc may be taking longer to sell its inventory, which could tie up working capital and potentially indicate excess or obsolete inventory. The company may need to analyze its inventory turnover and management practices to ensure optimal levels that support operational efficiency and profitability.
Peer comparison
Dec 31, 2024