Pool Corporation (POOL)
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 | 2.90 | 3.17 | 2.92 | 2.56 | 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 | |
| DOH | days | 125.98 | 114.97 | 125.21 | 142.78 | 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 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.90
= 125.98
The days of inventory on hand (DOH) for Pool Corporation have shown fluctuations over the period from March 31, 2020, to December 31, 2024.
- The DOH decreased from 133.90 days as of March 31, 2020, to 85.19 days as of September 30, 2020, indicating an improvement in inventory management efficiency.
- However, the trend reversed as DOH increased to 132.87 days by December 31, 2021, and further to 154.21 days by March 31, 2022, suggesting a potential buildup of excess inventory levels.
- Subsequently, there was a decline in DOH to 114.97 days by September 30, 2024, indicating a more efficient management of inventory levels.
The variations in DOH reflect changes in inventory management practices within Pool Corporation. A high DOH may indicate inefficiencies such as excessive inventory levels or slow-moving stock, while a low DOH could suggest stockouts or missed sales opportunities. It is important for the company to strike a balance in managing inventory levels to optimize working capital and maintain customer service levels.