SPS Commerce Inc (SPSC)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		—	2.90	2.96	2.66	2.61
DOH	days	—	125.80	123.43	137.11	139.58

December 31, 2023 calculation

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

To analyze the Days of Inventory on Hand (DOH) for SPS Commerce Inc., we need the inventory turnover ratio to calculate this metric. Since the table provided does not contain the necessary information to directly calculate the DOH, we can estimate the DOH based on the inventory turnover ratio.

The formula to calculate Days of Inventory on Hand is:
DOH = 365 days / Inventory Turnover Ratio

To interpret the DOH for SPS Commerce Inc. effectively, we would need the inventory turnover ratio data for the relevant years. Without this data, a precise analysis of SPS Commerce Inc.'s DOH is not possible at this time. Nonetheless, a low DOH typically indicates that the company is efficient in managing its inventory, while a high DOH suggests that inventory turnover is slower.

In future analyses, further calculations and comparisons with industry averages or historical trends would provide more insights into SPS Commerce Inc.'s inventory management efficiency and potential areas for improvement.