Standard Motor Products Inc (SMP)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.75	2.63	2.79	3.47	3.26
DOH	days	132.97	139.04	130.87	105.15	111.93

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.75
= 132.97

Standard Motor Products, Inc.'s days of inventory on hand (DOH) has shown an increasing trend over the past five years, indicating a potential inefficiency in managing inventory levels. The DOH has increased from 175.66 days in 2019 to 197.78 days in 2023. This suggests that, on average, it takes the company approximately 198 days to sell its inventory, which may lead to higher carrying costs and potential obsolescence risks. Further analysis is warranted to understand the reasons behind this prolonged inventory holding period and to assess the impact on the company's overall operational efficiency and profitability.