Xpel Inc (XPEL)
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 | 2.19 | 2.40 | 2.46 | 2.14 | 2.20 | 2.34 | 2.53 | 2.39 | 2.44 | 2.80 | 2.49 | 2.38 | 3.21 | 3.89 | 5.43 | 4.83 | 4.69 | 5.24 | 6.29 | 4.68 | |
| DOH | days | 166.56 | 152.08 | 148.40 | 170.23 | 166.22 | 155.73 | 144.07 | 152.69 | 149.68 | 130.22 | 146.62 | 153.47 | 113.79 | 93.88 | 67.17 | 75.52 | 77.82 | 69.70 | 58.01 | 77.99 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.19
= 166.56
The days of inventory on hand (DOH) for Xpel Inc have shown fluctuations over the period analyzed. From March 31, 2020, to June 30, 2022, the DOH fluctuated within a range of 58 to 153 days. The trend appeared to be generally increasing, peaking at 153.47 days on March 31, 2022. This rise could indicate potential issues such as overstocking or slow-moving inventory.
However, from June 30, 2022, to December 31, 2024, the DOH started to stabilize within a slightly smaller range of 144 to 170 days. This stabilization may suggest that Xpel Inc has managed to address previous inventory issues and maintain a more consistent level of inventory on hand. A DOH of around 170 days as of December 31, 2024, may signal that the company is holding a substantial amount of inventory relative to its sales volume, which could tie up working capital and increase carrying costs.
Overall, Xpel Inc's DOH trend warrants ongoing monitoring, as it can provide insights into inventory management efficiency, sales trends, and potential risks related to inventory levels. Engaging in further analysis to understand the reasons behind the fluctuations can help management make informed decisions to optimize inventory levels and improve overall operational efficiency.