Perdoceo Education Corp (PRDO)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		106.28	302.34	633.27	966.30	989.93
DOH	days	3.43	1.21	0.58	0.38	0.37

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 106.28
= 3.43

Days of inventory on hand (DOH) is a financial ratio that measures the average number of days a company holds inventory before it is sold. The formula to calculate DOH is (Average Inventory / Cost of Goods Sold) x 365 days.

Unfortunately, without specific data for each year provided in the table, it is not possible to calculate and analyze the DOH for Perdoceo Education Corporation over the past five years. In order to assess the efficiency of Perdoceo's inventory management and its ability to turn inventory into sales, the actual figures for average inventory and cost of goods sold for each year would be required.

A lower DOH indicates that a company is more efficient in managing its inventory because it can sell its products faster, reducing the risk of obsolescence and carrying costs. Conversely, a higher DOH may suggest inefficient inventory management, leading to potential liquidity issues and decreased profitability.

For a more thorough analysis of Perdoceo's inventory management efficiency, it is recommended to obtain the specific financial figures for average inventory and cost of goods sold for each year and calculate the DOH accordingly.