Simpson Manufacturing Company Inc (SSD)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.91 | 2.94 | 3.17 | 3.03 | 3.02 | 3.24 | 3.12 | 2.85 | 2.85 | 2.81 | 2.56 | 2.78 | 2.60 | 2.83 | 3.45 | 3.43 | 3.43 | 3.65 | 3.48 | 3.61 | |
| DOH | days | 125.24 | 124.09 | 115.09 | 120.65 | 120.95 | 112.54 | 117.01 | 128.25 | 127.87 | 130.10 | 142.71 | 131.14 | 140.55 | 129.17 | 105.94 | 106.54 | 106.51 | 100.04 | 104.73 | 101.10 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.91
= 125.24
Simpson Manufacturing Company Inc's days of inventory on hand (DOH) fluctuated over the observed period, ranging from a low of 100.04 days on September 30, 2020, to a high of 142.71 days on June 30, 2022. The DOH metric measures the average number of days it takes for the company to sell its inventory, reflecting the efficiency of inventory management.
The company experienced a significant spike in DOH on December 31, 2021, and September 30, 2021, reaching 140.55 days and 129.17 days, respectively. These elevated levels indicate that Simpson Manufacturing had excess inventory relative to its sales, which could tie up working capital and increase storage costs.
However, there was a positive trend noted in the later periods, with the DOH declining to 112.54 days on September 30, 2023, and further to 115.09 days on June 30, 2024. These reductions suggest improved inventory turnover efficiency, potentially resulting from better demand forecasting, inventory management practices, or changes in sales strategies.
Overall, Simpson Manufacturing Company Inc should continue to monitor and manage its inventory levels effectively to strike a balance between ensuring product availability for customers and optimizing working capital utilization. A decreasing trend in DOH indicates improved operational efficiency and can positively impact the company's cash flow and profitability.
Peer comparison
Dec 31, 2024