Arcosa Inc (ACA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.64 | 5.80 | 5.15 | 5.61 | 4.96 | |
| DOH | days | 78.67 | 62.93 | 70.92 | 65.03 | 73.62 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.64
= 78.67
The days of inventory on hand (DOH) for Arcosa Inc have exhibited some fluctuation over the past five years. In 2023, the company had an average of 78.67 days of inventory on hand, representing an increase compared to the previous year when it was 63.33 days. This suggests that the company may be holding onto its inventory for a longer period in 2023, which could tie up capital and potentially signal inefficiencies in inventory management.
Comparing 2023 to 2021 and 2020, where the DOH was 70.92 days and 65.03 days respectively, we see a general trend of increasing DOH, indicating a potential buildup of inventory levels over the years. However, it is worth noting that the DOH in 2023 is still lower than in 2019 when it stood at 73.62 days.
In conclusion, the increasing trend in days of inventory on hand for Arcosa Inc over the past few years may warrant closer scrutiny of the company's inventory management practices to ensure optimal utilization of resources and efficiency in operations.
Peer comparison
Dec 31, 2023