Skechers USA Inc (SKX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.85 | 3.88 | 3.98 | 4.55 | 4.52 | |
| DOH | days | 75.27 | 94.10 | 91.75 | 80.28 | 80.75 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.85
= 75.27
The Days of Inventory on Hand (DOH) for Skechers U S A, Inc. has shown fluctuations over the past five years. In 2023, the DOH decreased to 144.69 days from 168.88 days in 2022, indicating that the company held its inventory for a shorter period before selling it. This may suggest improved inventory management efficiency or an increase in sales relative to inventory levels.
Comparing 2023 to 2021 and 2020, the DOH has decreased, showing a trend of more efficient inventory turnover over the last three years. However, it is worth noting that the DOH increased from 2020 to 2022 before declining in 2023, which could indicate variability in the company's inventory management practices.
Despite the recent improvement in 2023, the DOH remains higher than in 2019 when it was 143.10 days, suggesting that Skechers U S A, Inc. is still holding inventory for a longer period compared to the previous years. This may lead to higher carrying costs and potential risks associated with obsolete or slow-moving inventory.
In conclusion, while there have been fluctuations in Skechers U S A, Inc.'s DOH over the past five years, the trend in 2023 indicates some improvement in inventory management efficiency. However, the company may still benefit from further efforts to optimize its inventory turnover and reduce the number of days inventory is held on hand.
Peer comparison
Dec 31, 2023