Simpson Manufacturing Company Inc (SSD)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.91 | 3.02 | 2.86 | 2.60 | 3.43 | |
| DOH | days | 125.24 | 120.87 | 127.82 | 140.47 | 106.54 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.91
= 125.24
The days of inventory on hand (DOH) for Simpson Manufacturing Company Inc have fluctuated over the past five years. Starting at 106.54 days on December 31, 2020, the DOH increased to 140.47 days by December 31, 2021, indicating a potential buildup of inventory relative to sales levels. Subsequently, there was a slight decrease in DOH to 127.82 days by December 31, 2022, followed by a further reduction to 120.87 days by December 31, 2023, suggesting improved inventory management efficiency.
However, by December 31, 2024, the DOH increased to 125.24 days, showing a slight increase in the number of days it takes to turn over inventory into sales. Overall, the trend in DOH suggests that Simpson Manufacturing Company Inc may have experienced inventory challenges in the past but has made some progress in optimizing inventory levels. Monitoring and possibly further improving inventory management efficiency could be beneficial for the company in maintaining a balance between inventory levels and sales requirements.
Peer comparison
Dec 31, 2024