Aecom Technology Corporation (ACM)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 14.67 | 14.28 | 9.05 | |
| DOH | days | — | — | 24.88 | 25.56 | 40.32 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The Days of Inventory on Hand (DOH) for Aecom Technology Corporation has shown a declining trend over the past five years. In 2020, the company held inventory for an average of 40.32 days, which decreased to 25.56 days by 2021 and further decreased to 24.88 days by 2022. This downward trend indicates that the company has been managing its inventory more efficiently, potentially leading to lower carrying costs and a quicker turnover of inventory.
A lower DOH implies that the company is selling its inventory faster, which could be a positive sign of effective inventory management, strong demand for its products, or improved supply chain efficiency. However, it is essential to monitor this ratio to ensure that the decreasing trend is sustainable and not due to reduced sales volume or inadequate inventory levels that might impact the company's ability to meet customer demand.
Peer comparison
Sep 30, 2024