Patrick Industries Inc (PATK)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		5.31	5.30	5.65	5.35	5.30	5.48	5.52	5.57	5.75	5.46	5.37	5.20	5.33	6.15	6.65	6.48	6.48	6.57	6.66	6.92
DOH	days	68.79	68.89	64.61	68.27	68.82	66.66	66.14	65.54	63.47	66.80	67.97	70.16	68.43	59.36	54.88	56.34	56.31	55.59	54.83	52.76

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.31
= 68.79

The days of inventory on hand (DOH) for Patrick Industries Inc have shown some fluctuations over the periods analyzed. The DOH increased steadily from March 31, 2020, to March 31, 2022, indicating that the company was holding inventory for a longer period before selling it. This might suggest inefficient inventory management practices or slowing sales.

From March 31, 2022, to June 30, 2024, the DOH continued to fluctuate but generally remained at elevated levels, indicating that inventory turnover may not have significantly improved. The peak DOH was observed on December 31, 2021, at 68.43 days, reflecting a potential inventory management challenge during that period.

The downward trend seen from March 31, 2022, to March 31, 2024, where the DOH reduced to 68.27 days indicates some improvement in inventory turnover efficiency. However, the DOH remained relatively high, indicating that there may still be room for further optimization in managing inventory levels.

Overall, the analysis of the DOH for Patrick Industries Inc reveals periods of high inventory holding duration, suggesting potential inefficiencies in managing inventory levels and sales processes. The company may benefit from conducting a thorough review of its inventory management practices to enhance operational efficiency and maximize profitability.