Adient PLC (ADNT)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		17.08	13.97	13.17	17.63	19.83
DOH	days	21.37	26.13	27.71	20.70	18.41

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.08
= 21.37

The days of inventory on hand (DOH) for Adient plc have fluctuated over the past five years. In the most recent fiscal year ending September 30, 2023, the DOH decreased to 21.37 days from 26.13 days in the prior year. This reduction indicates that the company held its inventory for a shorter period, which could be a positive sign of inventory management efficiency.

Comparing to the historical trend, the DOH was higher in the fiscal years 2021 and 2022 at 27.71 days and 26.13 days, respectively. In contrast, the company managed to keep a lower DOH in the fiscal years 2019 and 2020 at 18.41 days and 20.70 days, respectively.

Overall, the declining trend in DOH from 2022 to 2023 reflects potential improvements in inventory management practices within the company. This may indicate a better ability to turn inventory into sales, potentially leading to lower carrying costs and improved working capital management. However, it's important to further investigate the underlying reasons for this trend to fully assess its impact on the company's operations and financial performance.