Quanta Services Inc (PWR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 112.69 | 157.38 | 145.94 | 210.08 | 207.21 | |
| DOH | days | 3.24 | 2.32 | 2.50 | 1.74 | 1.76 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 112.69
= 3.24
Quanta Services, Inc.'s days of inventory on hand (DOH) has shown some fluctuation over the past five years. In 2023, the company had 3.57 days of inventory on hand, which is higher compared to the previous year's 2.59 days. This increase may indicate that Quanta Services, Inc. is holding onto inventory for a slightly longer period in 2023.
When comparing the DOH in 2023 to 2021 and 2020, there is a noticeable increase from 2.80 days and 1.93 days, respectively. This suggests that Quanta Services, Inc. may have increased its inventory levels or faced challenges in managing its inventory efficiently in 2023.
However, it is worth noting that the DOH in 2023 is the same as in 2019, indicating a potential stability in inventory management practices over the past five years.
Overall, an increase in days of inventory on hand may tie up more capital in inventory and increase carrying costs. It would be essential for Quanta Services, Inc. to closely monitor its inventory levels and implement strategies to optimize its inventory management efficiently.
Peer comparison
Dec 31, 2023