Perdoceo Education Corp (PRDO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		35.67	26.04	61.30	120.29	187.53
DOH	days	10.23	14.01	5.95	3.03	1.95

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 35.67
= 10.23

The days of inventory on hand (DOH) for Perdoceo Education Corp has increased over the years based on the available data.

- As of December 31, 2020, the company had 1.95 days of inventory on hand, indicating a relatively low level of inventory.
- By December 31, 2021, the DOH had increased to 3.03 days, suggesting a slight build-up of inventory compared to the previous year.
- The trend continued with a significant jump in DOH to 5.95 days by December 31, 2022, possibly indicating a more conservative inventory management approach or changes in the company's operations.
- The DOH further increased to 14.01 days by December 31, 2023, which could signal potential challenges in managing inventory efficiently or slower inventory turnover.
- However, by December 31, 2024, the DOH decreased to 10.23 days, though still higher compared to the earlier years, suggesting some improvement in managing inventory levels but still warranting attention.

Overall, the increase in days of inventory on hand over the years may raise concerns about the company's inventory management efficiency, liquidity, and potential risks related to excess inventory or slower inventory turnover. It would be advisable for stakeholders to closely monitor inventory levels and turnover to ensure optimal operational performance and financial health.