Verisk Analytics Inc (VRSK)

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		—	13.64	—	—	10.37	9.53	9.68	10.78	2.08	9.65	—	6.84	10.31	10.23	10.40	12.05	12.24	12.07	12.21	15.06
DOH	days	—	26.77	—	—	35.19	38.31	37.70	33.85	175.56	37.83	—	53.33	35.40	35.66	35.09	30.30	29.82	30.24	29.90	24.23

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Days of inventory on hand (DOH) is a metric that measures the average number of days a company holds its inventory before selling it. A low DOH generally indicates efficient inventory management, while a high DOH may suggest overstocking or slow-moving inventory.

Analyzing the DOH trend for Verisk Analytics Inc provides insight into the company's inventory management efficiency over time.

From March 31, 2020, to December 31, 2020, Verisk Analytics Inc managed to keep its DOH relatively stable, ranging between 24.23 days and 30.30 days. However, a notable increase was observed in the DOH from June 30, 2021, reaching 35.09 days and continued to rise until December 31, 2022, peaking at a significantly high level of 175.56 days. This sudden spike in DOH could indicate potential issues such as excess inventory, slow sales, or inefficiencies in inventory management during that period.

Subsequently, there was a decline in the DOH, with the metric decreasing to 33.85 days by March 31, 2023. The trend continued to improve slightly, with the DOH hovering around the mid-thirty-day range up to September 30, 2024, where the metric stood at 26.77 days.

The lack of DOH data for some quarters indicates potential data reporting issues or changes in accounting practices that may require further investigation.

In summary, Verisk Analytics Inc experienced fluctuations in its DOH over the analyzed period, with a notable increase and subsequent decrease, pointing to shifting inventory management strategies or operational challenges that impacted the company's inventory turnover efficiency. Monitoring this metric can help stakeholders assess the company's ability to efficiently manage its inventory levels and adapt to changing market conditions.