Paycom Soft (PAYC)

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		287.48	295.59	264.33	178.51	199.78	311.81	282.42	258.72	132.38	136.09	114.01	237.84	143.14	171.35	154.90	119.28	107.34	129.13	83.43	118.79
DOH	days	1.27	1.23	1.38	2.04	1.83	1.17	1.29	1.41	2.76	2.68	3.20	1.53	2.55	2.13	2.36	3.06	3.40	2.83	4.38	3.07

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 287.48
= 1.27

The days of inventory on hand (DOH) ratio for Paycom Soft shows the average number of days it takes for the company to sell its inventory. A lower DOH indicates that the company is efficient in managing its inventory, as it signals that inventory is being sold quickly.

Based on the provided data, we can observe some fluctuations in Paycom Soft's DOH over the quarters. For example, the DOH ranged from as low as 1.17 days in September 2023 to as high as 4.38 days in June 2020. The trend seems to indicate that Paycom Soft has been successful in reducing its DOH over time, with the ratio generally decreasing from 4.38 days in June 2020 to 1.27 days in December 2024.

Overall, a decreasing trend in DOH reflects positively on the company's inventory management efficiency, indicating that Paycom Soft is selling its inventory at a faster rate and may be effectively managing its supply chain to meet customer demand. However, it is essential to continue monitoring this ratio to ensure that inventory levels are optimized to support the company's sales operations effectively.