Skechers USA Inc (SKX)
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 | 2.24 | 2.45 | 2.65 | 2.90 | 2.52 | 2.82 | 2.65 | 2.63 | 2.16 | 2.14 | 2.30 | 2.37 | 2.17 | 2.45 | 2.75 | 2.31 | 2.37 | 2.30 | 2.38 | 2.78 | |
| DOH | days | 162.87 | 148.79 | 137.67 | 125.92 | 144.69 | 129.43 | 137.70 | 138.57 | 168.88 | 170.58 | 158.81 | 154.14 | 168.53 | 148.95 | 132.65 | 158.27 | 154.14 | 158.59 | 153.14 | 131.43 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.24
= 162.87
Days of Inventory on Hand (DOH) is a financial ratio that provides insight into how efficiently a company manages its inventory. The DOH ratio for Skechers USA Inc has shown some fluctuations over the years, indicating changes in the company's inventory management practices.
From March 31, 2020, to June 30, 2021, Skechers saw a gradual increase in its DOH, reaching a peak of 158.59 days on September 30, 2020. This increase suggests that the company might have been holding onto its inventory for a longer period, which could tie up cash and lead to potential obsolescence risks.
Subsequently, from December 31, 2021, to September 30, 2023, the DOH ratio fluctuated within a range, indicating some level of stability in the company's inventory management. However, there was a notable decrease in DOH from December 31, 2023, to June 30, 2024, suggesting that Skechers may have streamlined its inventory processes, leading to a reduction in the number of days inventory is held.
Overall, a downward trend in the DOH ratio can indicate that Skechers is becoming more efficient in managing its inventory, potentially freeing up working capital and reducing risks related to excess inventory. However, it is essential for the company to strike a balance to ensure that it maintains adequate inventory levels to meet customer demand without incurring excessive storage costs or stockouts.
Peer comparison
Dec 31, 2024