Cactus Inc (WHD)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 3.06 3.36 2.76 2.65 2.71
DOH days 119.38 108.67 132.02 137.90 134.76

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.06
= 119.38

To analyze Cactus Inc's Days of Inventory on Hand (DOH) over the five-year period from 2020 to 2024, we observe a fluctuating trend in the efficiency of managing inventory.

- In 2020, the DOH was recorded at 134.76 days, indicating that, on average, Cactus Inc held its inventory for approximately 134.76 days before selling it.
- By the end of 2021, the DOH increased slightly to 137.90 days, suggesting a potential slowdown in inventory turnover.
- However, in 2022, there was a decrease in DOH to 132.02 days, implying a slight improvement in inventory management efficiency.
- A significant drop was noted in 2023, with the DOH sharply declining to 108.67 days, potentially indicating better inventory management or a strategic shift in operations.
- In 2024, the DOH increased slightly to 119.38 days but remained lower than the initial years, reflecting a relatively improved inventory turnover rate compared to previous periods.

Overall, the fluctuation in Cactus Inc's DOH suggests varying levels of inventory management efficiency over the five-year period, with potential room for further optimization to enhance operational effectiveness and financial performance.