Patrick Industries Inc (PATK)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.01	6.32	5.84	7.09	8.21
DOH	days	60.77	57.73	62.52	51.50	44.44

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.01
= 60.77

The days of inventory on hand (DOH) for Patrick Industries, Inc. have shown a fluctuating trend over the past five years. In 2019, the company had 48.41 days of inventory on hand, which increased to 56.31 days in 2020. Subsequently, there was a further increase to 68.43 days in 2021 before decreasing slightly to 63.78 days in 2022. Finally, by the end of 2023, the DOH increased again to 69.33 days.

This trend indicates that the company may be facing challenges in managing its inventory efficiently, as a higher number of days of inventory on hand suggests that the company is holding onto its inventory for a longer period before selling it. This could tie up capital and increase storage costs. It would be important for Patrick Industries, Inc. to assess and possibly streamline its inventory management processes to improve inventory turnover and reduce the number of days of inventory on hand.