Quanta Services Inc (PWR)
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 | 78.22 | 72.24 | 81.29 | 82.79 | 102.59 | 101.92 | 100.32 | 94.14 | 140.85 | 143.92 | 136.74 | 128.51 | 130.25 | 163.78 | 158.34 | 185.08 | 189.05 | 245.22 | 209.88 | 208.49 | |
| DOH | days | 4.67 | 5.05 | 4.49 | 4.41 | 3.56 | 3.58 | 3.64 | 3.88 | 2.59 | 2.54 | 2.67 | 2.84 | 2.80 | 2.23 | 2.31 | 1.97 | 1.93 | 1.49 | 1.74 | 1.75 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 78.22
= 4.67
The days of inventory on hand (DOH) for Quanta Services Inc have shown fluctuation over the analyzed period. From March 31, 2020, to December 31, 2024, the DOH has generally increased, indicating potential inefficiencies in managing inventory levels.
In March 2020, the company held inventory for approximately 1.75 days, which remained relatively stable until September 2020, when it decreased to 1.49 days. Subsequently, the DOH exhibited an upward trend, reaching 4.67 days by December 2024.
The increasing trend in DOH suggests that Quanta Services Inc may be experiencing challenges in effectively managing its inventory levels. A higher DOH may indicate excess inventory, potentially leading to increased holding costs, obsolete inventory, and reduced liquidity.
It is essential for the company to closely monitor inventory levels, implement efficient inventory management strategies, and strive to strike a balance between carrying enough inventory to meet customer demand while minimizing carrying costs associated with excessive stock.
Peer comparison
Dec 31, 2024