Upbound Group Inc. (UPBD)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 405.69 | 307.93 | 309.94 | 366.66 | 209.97 | |
| DOH | days | 0.90 | 1.19 | 1.18 | 1.00 | 1.74 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 405.69
= 0.90
The days of inventory on hand (DOH) for Upbound Group Inc. have exhibited a downward trend over the observed period. In December 31, 2020, the company held inventory for an average of 1.74 days, which decreased to 1.00 days by December 31, 2021. The trend continued with slight fluctuations as the DOH figures were 1.18 days, 1.19 days, and 0.90 days for December 31, 2022, 2023, and 2024 respectively.
This declining trend signifies that Upbound Group Inc. has been managing its inventory efficiently, with the ability to sell goods more quickly without holding excess stock. A lower DOH indicates that the company is effectively controlling its inventory levels, reducing carrying costs, and potentially improving cash flow through faster turnover.
However, the decreasing trend could also raise concerns about stockouts or possible underestimation of demand, which could impact customer satisfaction or sales. Nevertheless, a comprehensive analysis would involve comparing these figures with industry benchmarks and considering other financial ratios to gain deeper insights into Upbound Group Inc.'s inventory management performance.
Peer comparison
Dec 31, 2024