PACCAR Inc (PCAR)

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 11.74 0.38 0.36 0.36 0.38 0.36 0.33 0.34 0.38 0.35 0.38 0.40 0.48 0.39 0.51 0.72 0.90 0.99 0.98 0.90
DOH days 31.09 966.90 1,011.14 1,005.68 970.58 1,025.47 1,097.06 1,084.69 961.84 1,035.20 962.16 922.82 761.61 925.72 715.04 504.45 405.52 368.64 370.84 407.73

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.74
= 31.09

The days of inventory on hand (DOH) for PACCAR Inc have shown significant fluctuations over the analyzed period. The DOH has ranged from a low of 31.09 days on December 31, 2024, to a high of 1,097.06 days on June 30, 2023.

There appears to be a general increasing trend in the DOH from the beginning of the analyzed period, reaching a peak in the middle of 2023 before declining in the latter years. The steep increase in DOH from 504.45 days on March 31, 2021, to 1,097.06 days on June 30, 2023, suggests a potential issue with inventory management during that period.

The sudden decrease in DOH to 31.09 days on December 31, 2024, could indicate a more efficient inventory management approach or a clearing out of excess inventory. However, it would be important to investigate the reasons behind such a drastic reduction in the DOH.

Overall, the fluctuating trend in the DOH for PACCAR Inc highlights the importance of closely monitoring and managing inventory levels to ensure optimal operational efficiency and financial performance. Understanding the reasons behind these fluctuations can provide valuable insights into the company's inventory management practices and potential areas for improvement.