Shenandoah Telecommunications Co (SHEN)

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 — — — — 10.79 — 3.62 3.19 4.75 3.61 2.30 4.41 — 7.34 0.08 0.11 0.16 0.19 78.20 37.16
DOH days — — — — 33.84 — 100.88 114.57 76.78 101.23 159.03 82.68 — 49.73 4,350.02 3,185.53 2,306.00 1,970.65 4.67 9.82

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The days of inventory on hand (DOH) ratio for Shenandoah Telecommunications Co shows fluctuations over the period analyzed. The DOH measures the number of days a company holds inventory before it is sold. A lower DOH is generally preferable as it indicates a faster turnover of inventory.

From March 31, 2020, to December 31, 2022, the DOH was within a reasonable range, with the company maintaining inventory for around 1 to 159 days. However, there were significant spikes in this ratio in September 2020 (1,970.65 days) and December 2020 (2,306.00 days), which may indicate issues with inventory management during those periods.

The DOH improved in the subsequent quarters, but there was a sharp increase to 4,350.02 days in June 2021, which is significantly high. This may suggest inefficiencies in inventory control or challenges in predicting demand accurately.

By September 2021, the DOH decreased to 49.73 days, reflecting a positive change. However, it is important to note that the DOH ratio dropped to "0" in December 2021, March 2024, June 2024, September 2024, and December 2024. A DOH of zero could indicate data quality issues or irregularities in reporting.

Overall, Shenandoah Telecommunications Co should monitor its inventory management closely to maintain an optimal balance between holding enough inventory to meet demand and avoiding excess inventory that ties up capital. Efforts to streamline inventory processes and improve demand forecasting could help optimize the DOH ratio in the future.