SPS Commerce Inc (SPSC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 2.90 | 2.96 | 2.66 | |
| DOH | days | — | — | 125.80 | 123.43 | 137.11 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The days of inventory on hand (DOH) for SPS Commerce Inc decreased from 137.11 days as of December 31, 2020, to 123.43 days as of December 31, 2021. This improvement indicates that the company has been able to manage its inventory more efficiently, potentially reducing carrying costs and minimizing the risk of obsolete inventory.
As of December 31, 2022, the DOH further decreased to 125.80 days, continuing the trend of better inventory management. However, the lack of data for December 31, 2023 and December 31, 2024 prevents a complete analysis of the company's inventory efficiency in those years.
Overall, the decreasing trend in days of inventory on hand suggests that SPS Commerce Inc has been effective in managing its inventory levels, which can lead to improved cash flow and profitability. Investors and stakeholders may view this positively as it indicates operational efficiency and effective inventory control strategies.
Peer comparison
Dec 31, 2024