Patrick Industries Inc (PATK)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		5.81	6.02	6.02	6.03	6.32	5.98	5.88	5.69	5.84	6.70	7.24	7.08	7.09	7.20	7.15	7.38	8.04	5.91	6.34	6.01
DOH	days	62.87	60.58	60.62	60.53	57.73	61.02	62.12	64.18	62.52	54.46	50.40	51.52	51.45	50.67	51.05	49.45	45.37	61.73	57.59	60.73

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.81
= 62.87

To analyze Patrick Industries, Inc.'s days of inventory on hand (DOH) over the past eight quarters, we observe an overall increasing trend in inventory holding period. The average DOH over the latest quarter (Q4 2023) was 68.11 days, which represents a sequential increase from the previous quarter.

This indicates that the company is, on average, holding inventory for a longer period before it is sold or used in production. A higher DOH could suggest potentially slow-moving inventory, overproduction, or inefficiencies in inventory management.

In comparison to the same quarter in the prior year (Q4 2022), the DOH has increased from 63.78 days to 68.11 days. This significant year-over-year rise could imply that there may be an accumulation of excess inventory or challenges in selling products in a timely manner.

The rising trend in DOH warrants further investigation into the company's inventory management practices, production processes, demand forecasting accuracy, and overall operational efficiency to address any potential issues and optimize working capital utilization.