ScanSource Inc (SCSC)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.44 | 5.63 | 4.41 | 5.05 | 5.96 | |
| DOH | days | 67.09 | 64.80 | 82.83 | 72.31 | 61.28 |
June 30, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.44
= 67.09
The analysis of ScanSource Inc.'s days of inventory on hand (DOH) over the specified period reveals fluctuations that reflect changes in inventory management efficiency and operational strategy. As of June 30, 2021, the company maintained a DOH of approximately 61.28 days. This figure increased significantly in the subsequent year, reaching 72.31 days as of June 30, 2022, indicating a rise in the average duration inventory remains on hand before being sold. The upward trend continued, with DOH rising to 82.83 days by June 30, 2023, suggesting potential inventory buildup, slower inventory turnover, or strategic inventory accumulation during this period.
Following this peak, a notable decline is observed, with the DOH decreasing to 64.80 days as of June 30, 2024. This reduction suggests an improvement in inventory turnover rates, possibly reflecting better inventory management, supply chain efficiencies, or adjustments in inventory levels to meet demand more closely. The figure then shows a slight increase to 67.09 days by June 30, 2025, indicating a modest stabilization or slight elongation in inventory holding periods.
Overall, the DOH pattern demonstrates a significant increase from 2021 to 2023, followed by a decrease and stabilization phase. These dynamics should be considered in assessing the company's inventory management strategies, operational adjustments, and potential impacts on liquidity and profitability.