Verra Mobility Corp (VRRM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.65 | 13.98 | 17.66 | 873.37 | 6.91 | |
| DOH | days | 23.32 | 26.11 | 20.66 | 0.42 | 52.79 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.65
= 23.32
The days of inventory on hand (DOH) for Verra Mobility Corp have fluctuated over the past three years. In 2021, the DOH was at 125.59 days, indicating that the company held inventory for approximately 125 days before selling it. This suggests efficient inventory management during that period.
However, in 2022 and 2023, the DOH increased to 149.11 days and 150.88 days respectively. This upward trend may suggest that Verra Mobility Corp is taking longer to convert its inventory into sales, which could tie up resources and potentially lead to higher carrying costs.
It is important for Verra Mobility Corp to analyze the underlying reasons for the increase in DOH and consider implementing strategies to optimize inventory levels and turnover to improve operational efficiency and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2023