TRI Pointe Homes Inc (TPH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.09	0.86	1.00	0.98	0.87
DOH	days	334.56	424.36	363.40	372.89	419.45

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.09
= 334.56

Looking at the days of inventory on hand (DOH) for TRI Pointe Homes Inc over the past five years provides insight into how efficiently the company manages its inventory. The trend shows a fluctuation in DOH, ranging from 334.56 days at the end of December 31, 2024, to 424.36 days at the end of December 31, 2023.

The company experienced a decrease in DOH from 419.45 days at the end of December 31, 2020, down to 372.89 days at the end of December 31, 2021, and further down to 363.40 days at the end of December 31, 2022. This trend suggests an improvement in managing inventory levels over these years.

However, the increase in DOH to 424.36 days by the end of December 31, 2023, followed by a significant drop to 334.56 days by the end of December 31, 2024, may indicate fluctuations in demand, production, or inventory management practices during these periods.

Overall, a lower DOH indicates that the company is selling its inventory at a faster rate, whereas a higher DOH suggests that inventory might be overstocked or sales are slowing down. TRI Pointe Homes Inc should monitor its DOH closely to ensure optimal inventory management and operational efficiency.