Pool Corporation (POOL)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.90 | 2.84 | 2.67 | 2.75 | 3.59 | |
| DOH | days | 125.98 | 128.40 | 136.76 | 132.87 | 101.60 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.90
= 125.98
The days of inventory on hand (DOH) for Pool Corporation has shown an increasing trend over the past five years. From 101.60 days as of December 31, 2020, the DOH has gradually risen to 125.98 days by December 31, 2024. This indicates that, on average, Pool Corporation held inventory for approximately 125 days before selling it during the most recent year.
A higher DOH value suggests that Pool Corporation is taking longer to sell its inventory, which can tie up working capital and increase carrying costs. It may also indicate that the company is struggling to efficiently manage its inventory levels.
Investors and stakeholders should closely monitor inventory levels and the DOH metric to ensure that Pool Corporation is effectively managing its inventory to meet customer demand and optimize its operational efficiency.