Albany International Corporation (AIN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.58 | 5.90 | 6.12 | 6.41 | 6.90 | |
| DOH | days | 65.45 | 61.82 | 59.65 | 56.90 | 52.91 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.58
= 65.45
Albany International Corp.'s days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. In 2023, the DOH increased to 85.46 days from 78.67 days in 2022. This indicates that the company held its inventory for a longer period in 2023 compared to the previous year. The increase in DOH could suggest slower inventory turnover or an increase in the amount of inventory held by the company.
Comparing the latest DOH to the figures from 2021 and 2020, we observe a gradual increase over the years, indicating a potential trend of holding inventory for longer periods. The substantial rise from 52.91 days in 2019 to 85.46 days in 2023 highlights a significant shift in inventory management practices.
It is essential for management to closely monitor inventory levels and turnover to optimize working capital utilization and avoid issues such as inventory obsolescence or carrying excess inventory. Further analysis of the underlying reasons for the increase in DOH would be crucial to identify potential inefficiencies in inventory management and to implement corrective measures where necessary.