Quanta Services Inc (PWR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 77.49 | 102.16 | 140.85 | 130.25 | 189.05 | |
| DOH | days | 4.71 | 3.57 | 2.59 | 2.80 | 1.93 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 77.49
= 4.71
Quanta Services Inc's days of inventory on hand (DOH) has shown an increasing trend over the past five years. Starting at 1.93 days on December 31, 2020, the DOH increased to 2.80 days by December 31, 2021, and further to 2.59 days by December 31, 2022. The trend continued as the DOH rose to 3.57 days by December 31, 2023, and peaked at 4.71 days by December 31, 2024.
The rising trend in DOH indicates that Quanta Services Inc has been holding onto its inventory for longer periods over the years, which may suggest inefficiencies in inventory management or slower inventory turnover. A higher DOH value could tie up capital in inventory, leading to increased storage costs and potential obsolescence risks.
It would be important for Quanta Services Inc to closely monitor its inventory levels, optimize procurement processes, and streamline operations to potentially reduce DOH and improve overall efficiency in inventory management.
Peer comparison
Dec 31, 2024