Service Corporation International (SCI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 89.53 | 93.07 | 108.74 | 105.27 | 98.34 | |
| DOH | days | 4.08 | 3.92 | 3.36 | 3.47 | 3.71 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 89.53
= 4.08
Service Corp. International's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years, ranging from 3.33 days in 2021 to 4.08 days in 2023. The DOH metric indicates how many days, on average, the company holds its inventory before selling it.
The increasing trend in DOH from 2020 to 2023 may suggest a potential inefficiency in managing inventory levels, leading to a longer holding period before conversion to sales. A higher DOH could tie up capital in inventory and indicate potential risks such as obsolescence or excess stock.
On the other hand, the variability in DOH over the years could also be influenced by factors such as seasonality, demand fluctuations, or strategic inventory management decisions. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of Service Corp. International's inventory management practices.
Peer comparison
Dec 31, 2023