Standard Motor Products Inc (SMP)

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		1.63	1.94	1.91	1.81	1.85	1.95	1.89	1.83	1.80	1.78	1.71	1.73	1.88	2.03	2.01	1.94	2.17	2.33	2.02	2.01
DOH	days	224.40	188.31	191.46	201.76	197.78	187.05	192.89	199.46	202.34	204.53	212.83	211.18	194.41	179.79	181.20	187.78	168.29	156.71	180.76	181.66

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.63
= 224.40

The days of inventory on hand (DOH) for Standard Motor Products Inc have shown fluctuations over the past few years. From the data provided, we can observe that the company's DOH ranged from a high of 224.40 days on December 31, 2024, to a low of 156.71 days on September 30, 2020.

Overall, the trend in DOH seems to be somewhat erratic, without a clear directional pattern. However, during the most recent periods, the DOH has shown an increasing trend, reaching 224.40 days on December 31, 2024. This increase in DOH may indicate that the company is carrying a higher level of inventory relative to its sales volume, which could potentially lead to higher holding costs and tie-up of capital.

It is important for Standard Motor Products Inc to monitor and manage its inventory levels efficiently to ensure optimal use of resources and mitigate risks associated with excessive inventory. Management should assess the reasons behind the fluctuations in DOH and implement strategies to improve inventory turnover and control stocking levels to enhance overall operational efficiency and profitability.