Verra Mobility Corp (VRRM)

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		5.58	6.39	7.35	5.58	3.44	2.10	2.29	2.49	2.45	2.97	2.94	2.85	2.91	0.71	0.65	1.04	52.99	1.38	1.73	1.08
DOH	days	65.43	57.10	49.64	65.39	106.25	173.67	159.25	146.64	149.11	122.88	124.35	128.14	125.59	515.83	562.26	352.48	6.89	265.02	210.94	338.02

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.58
= 65.43

Days of Inventory on Hand (DOH) is a liquidity ratio that measures how many days, on average, a company holds onto its inventory before selling it. A lower DOH indicates efficient inventory management, as it implies that the company is selling its inventory quickly.

Analyzing Verra Mobility Corp's DOH over the period from March 2020 to December 2024 reveals fluctuations in inventory holding periods. The company's DOH peaked at 562.26 days on June 30, 2021, suggesting an extended period of holding inventory before selling it. This high DOH could indicate issues with inventory management or potential inefficiencies in selling products.

However, Verra Mobility Corp made improvements in managing its inventory, as evidenced by significant reductions in DOH in subsequent periods. By December 31, 2022, the company's DOH decreased to 149.11 days, reflecting a more streamlined inventory turnover process.

Further progress is observed as Verra Mobility Corp continued to optimize its inventory management practices, with a DOH of 49.64 days on June 30, 2024. This sharp decline in DOH indicates that the company has become more efficient in converting inventory into sales within a shorter timeframe.

Overall, the trend in Verra Mobility Corp's DOH suggests a positive shift towards more effective inventory management, leading to better liquidity and potentially improved financial performance.