Paycom Soft (PAYC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		239.00	199.78	132.38	143.14	107.34
DOH	days	1.53	1.83	2.76	2.55	3.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 239.00
= 1.53

Based on the provided data, Paycom Soft's days of inventory on hand (DOH) have decreased consistently over the years, indicating a more efficient management of inventory levels.

As of December 31, 2020, the company had an inventory holding period of 3.40 days, which decreased to 2.55 days by December 31, 2021. Subsequently, the DOH increased slightly to 2.76 days by December 31, 2022, before dropping significantly to 1.83 days by December 31, 2023. The trend continued with a further decrease to 1.53 days by December 31, 2024.

This declining trend in DOH suggests that Paycom Soft has been able to optimize its inventory turnover, converting inventory into sales at a faster rate. Lower DOH values indicate efficient inventory management, reducing the risk of obsolete inventory and potentially lowering associated holding costs. Overall, the decreasing trend in DOH reflects positively on the company's operational efficiency and shows a proactive approach to managing its inventory levels.