ScanSource Inc (SCSC)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.44 | 5.42 | 5.37 | 5.51 | 5.61 | 5.78 | 5.50 | 5.00 | 4.41 | 4.45 | 4.35 | 4.70 | 5.05 | 5.09 | 5.18 | 5.83 | 5.96 | 5.67 | 6.51 | 6.84 | |
| DOH | days | 67.09 | 67.38 | 68.03 | 66.23 | 65.11 | 63.18 | 66.30 | 73.06 | 82.83 | 81.98 | 83.84 | 77.62 | 72.31 | 71.74 | 70.51 | 62.56 | 61.28 | 64.39 | 56.05 | 53.40 |
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) reveals a generally increasing trend from September 30, 2020, through mid-2023, followed by a period of fluctuation and subsequent stabilization. Specifically, the DOH rose from approximately 53.4 days at the end of September 2020 to a peak of around 83.84 days by the end of December 2022. This upward trajectory indicates a lengthening of the inventory holding period over this period, suggesting either increased inventory accumulation, slowed sales velocity, or a strategic build-up of stock.
Between the end of 2022 and mid-2023, the DOH experienced a slight decrease from approximately 83.84 days to around 73 days by September 2023, reflecting a potential improvement in inventory efficiency or a response to changing market dynamics. Subsequently, the DOH declined further to approximately 66.3 days by December 2023, and then stabilized around 63 to 67 days through the first half of 2024.
Overall, the pattern indicates that ScanSource’s inventory levels intensified significantly between 2020 and 2022, which could be attributed to various factors such as increased inventory due to supply chain considerations, changes in product mix, or strategic stockpiling. The moderate decline following late 2022 suggests efforts to optimize inventory levels, aligning them more closely with sales rates. The stabilized DOH in 2024 signals a period of inventory management consistency, potentially reflecting a balanced approach to inventory procurement relative to sales.