Pool Corporation (POOL)
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 | 2.84 | 3.14 | 2.88 | 2.44 | 2.67 | 2.71 | 2.56 | 2.37 | 2.75 | 3.42 | 3.81 | 3.15 | 3.59 | 4.28 | 3.91 | 2.73 | 3.24 | 3.63 | 3.13 | 2.61 | |
| DOH | days | 128.40 | 116.29 | 126.52 | 149.50 | 136.76 | 134.46 | 142.77 | 154.21 | 132.87 | 106.81 | 95.86 | 115.90 | 101.60 | 85.19 | 93.40 | 133.90 | 112.69 | 100.54 | 116.66 | 139.73 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.84
= 128.40
Pool Corporation's Days of Inventory on Hand (DOH) has fluctuated over the past eight quarters, ranging from a low of 116.29 days in Q3 2023 to a high of 154.21 days in Q1 2022. The average DOH over this period is approximately 134.06 days.
A decreasing trend in DOH, as observed in Q3 2023 compared to the previous quarter, Q4 2023, can indicate improved inventory management efficiency, as the company is selling its inventory more quickly. Conversely, an increasing trend, such as the spike in Q1 2023, may suggest issues with inventory turnover or overstocking.
Additionally, comparing the DOH to industry benchmarks and historical data can provide further insights into Pool Corporation's inventory management effectiveness. Overall, monitoring DOH alongside other financial ratios and performance metrics is crucial for evaluating the company's operational efficiency and liquidity.