ABM Industries Incorporated (ABM)
Days of inventory on hand (DOH)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | 97.96 | 90.80 | 67.96 | 68.96 | |
| DOH | days | — | 3.73 | 4.02 | 5.37 | 5.29 |
October 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The days of inventory on hand (DOH) for ABM Industries Incorporated has shown a decreasing trend over the past five years. The company managed to reduce its DOH from 5.29 days in October 2020 to 3.73 days in October 2024. This indicates that the company has been more efficient in managing its inventory levels, as it now takes fewer days to sell the inventory on hand.
A decreasing trend in DOH is generally considered positive, as it suggests better inventory management, lower holding costs, and potentially higher liquidity. The consistent improvement in this ratio over the years reflects positively on ABM Industries' ability to optimize its inventory levels and potentially generate higher cash flows from the sale of goods.
Overall, the declining days of inventory on hand for ABM Industries indicate an improvement in operational efficiency and a potentially positive impact on the company's financial performance.
Peer comparison
Oct 31, 2024