TRI Pointe Homes Inc (TPH)

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		1.09	1.01	0.93	0.88	0.86	0.89	0.99	1.03	1.00	0.82	0.85	0.91	0.98	0.92	0.90	0.86	0.87	0.87	0.85	0.79
DOH	days	334.54	360.90	392.70	415.35	422.81	408.96	367.05	353.27	363.40	443.78	431.84	402.82	372.89	397.21	406.65	422.57	419.45	417.19	431.84	461.89

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.09
= 334.54

The days of inventory on hand (DOH) for TRI Pointe Homes Inc has shown fluctuations over the past few years, ranging from a high of 461.89 days on March 31, 2020, to a low of 334.54 days on December 31, 2024. The company's DOH metric indicates the number of days it takes to sell its inventory at the current rate. A lower DOH value suggests that the company is able to sell its inventory more quickly, while a higher DOH value may indicate slower sales or excess inventory.

Looking at the trend, we observe that the DOH decreased steadily from 2020 to 2022, reaching a low point in December 2022. This may indicate improved inventory management and more efficient sales processes during this period. However, there was a slight uptick in DOH in the following quarters, indicating a possible slowdown in inventory turnover.

It is essential for TRI Pointe Homes Inc to closely monitor its inventory levels and sales performance to ensure optimal efficiency and profitability. They may need to adjust their inventory management strategies to maintain a healthy balance between inventory levels and sales velocity. Further analysis of the factors influencing inventory turnover and sales performance would be beneficial in determining the underlying causes of the fluctuations in DOH and implementing appropriate corrective actions.