SPS Commerce Inc (SPSC)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		—	2.93	2.98	2.98	2.90	2.94	2.96	2.94	2.96	2.96	2.83	2.75	2.66	2.65	2.66	2.66	2.61	2.59	2.47	2.40
DOH	days	—	124.46	122.46	122.34	125.80	124.22	123.36	124.36	123.43	123.46	128.92	132.81	137.11	137.83	137.48	137.40	139.58	141.03	147.79	151.91

December 31, 2023 calculation

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

To analyze SPS Commerce Inc.'s days of inventory on hand (DOH), we need specific data for each quarter, as provided in the table. DOH is calculated as (Average Inventory / Cost of Goods Sold) * number of days in the period. However, without the exact figures for average inventory and Cost of Goods Sold for each quarter, a detailed analysis of DOH cannot be performed without further information.

The DOH ratio provides insights into how efficiently a company is managing its inventory. A lower DOH value indicates faster inventory turnover, which can be a positive sign as it suggests the company is selling its goods quickly. Conversely, a higher DOH value may suggest that the company is struggling to sell its inventory, potentially leading to holding excess inventory or facing obsolete inventory risks.

To gain a more in-depth understanding of SPS Commerce Inc.'s inventory management efficiency, we would need the specific financial data for each quarter to calculate and compare DOH over time. This analysis would help to identify trends and potential issues in the company's inventory management practices.