Simpson Manufacturing Company Inc (SSD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.02 | 2.86 | 2.60 | 3.43 | 3.65 | |
| DOH | days | 120.87 | 127.82 | 140.47 | 106.54 | 99.87 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.02
= 120.87
Simpson Manufacturing Co., Inc.'s days of inventory on hand (DOH) measures the number of days it takes for the company to sell its average inventory. A lower DOH indicates more efficient inventory management, while a higher DOH suggests slower turnover and potentially excess inventory.
Over the past five years, Simpson Manufacturing Co., Inc.'s DOH has fluctuated. In 2019, the DOH was 142.68 days, indicating relatively efficient inventory turnover. However, it increased in 2020 to 149.76 days before peaking at 197.96 days in 2021, suggesting a potential slowdown in inventory management efficiency.
In the most recent years, the DOH has improved slightly but remains relatively high at 172.07 days in 2023 and 172.99 days in 2022. This indicates that the company may still be carrying excess inventory or facing challenges in selling its products promptly.
It is essential for Simpson Manufacturing Co., Inc. to closely monitor and manage its inventory levels to optimize working capital efficiency and ensure that inventory turnover aligns with business demand. Further analysis and potential adjustments to the inventory management process may help the company improve its DOH and overall operational performance.
Peer comparison
Dec 31, 2023