Verra Mobility Corp (VRRM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.22	2.42	2.45	2.91	1.39
DOH	days	297.99	150.88	149.11	125.59	261.83

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.22
= 297.99

Verra Mobility Corp's days of inventory on hand (DOH) has seen fluctuations over the years. The trend shows that the company held inventory for an average of 261.83 days at the end of December 2020, which decreased significantly to 125.59 days by December 31, 2021, indicating a more efficient management of inventory levels. However, by the end of December 31, 2022, the DOH increased to 149.11 days, suggesting a slight uptick in inventory holding period.

Further, by December 31, 2023, the DOH remained relatively stable at 150.88 days. However, there was a notable spike in the inventory holding period by December 31, 2024, reaching 297.99 days, which indicates an increase in the average time the company takes to sell its inventory.

Overall, Verra Mobility Corp should monitor its inventory management closely to optimize its efficiency and cost-effectiveness, especially considering the significant fluctuations observed in the DOH over the years.