Upbound Group Inc. (UPBD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 307.93 | 309.94 | 366.66 | 209.97 | 210.29 | |
| DOH | days | 1.19 | 1.18 | 1.00 | 1.74 | 1.74 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 307.93
= 1.19
To analyze the days of inventory on hand (DOH) trend for Upbound Group Inc., we observe a consistent pattern of relatively low DOH numbers over the past five years. The DOH metric indicates the average number of days a company holds its inventory before it is sold, reflecting efficiency in managing inventory levels.
Upbound Group Inc. has maintained a low DOH figure, ranging from 1.00 to 1.74 days, over the period from 2019 to 2023. A lower DOH signifies a faster turnover of inventory, implying that the company is effectively managing its inventory levels to avoid excess stock and minimize holding costs.
The slight fluctuations in the DOH figures from 2019 to 2023 do not indicate a significant shift in the company's inventory management strategy. Instead, it suggests a relatively stable operational efficiency in terms of inventory turnover.
Overall, the consistently low DOH numbers for Upbound Group Inc. indicate strong inventory management practices, efficient operations, and an ability to quickly convert inventory into sales. However, further analysis and comparison with industry benchmarks would provide a more comprehensive evaluation of the company's inventory management performance.
Peer comparison
Dec 31, 2023