Ashland Global Holdings Inc (ASH)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.74 | 2.43 | 2.48 | 3.05 | 2.80 | |
| DOH | days | 133.06 | 150.03 | 147.08 | 119.81 | 130.34 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.74
= 133.06
Ashland Global Holdings Inc's days of inventory on hand (DOH) has shown fluctuations over the past five years. As of September 30, 2024, the company's DOH stands at 133.06 days, a decrease from the previous year. This indicates that the company is holding inventory for a shorter period before selling it, which may suggest effective inventory management.
Comparing the current DOH to the prior years, we observe a general trend of variability. In 2023, the DOH was 150.03 days, significantly higher compared to 2024. However, in 2022 and 2021, the DOH figures were relatively consistent at 147.08 days and 119.81 days, respectively. The year 2020 saw a slight increase in DOH to 130.34 days.
A lower DOH implies that Ashland Global Holdings Inc is turning over its inventory more efficiently, potentially reducing holding costs and minimizing the risk of obsolete inventory. This could indicate improved forecasting, production, or sales strategies within the company.
Overall, the downward trend in DOH from 2023 to 2024 suggests a positive development in inventory management for Ashland Global Holdings Inc. However, it is essential for the company to continue monitoring and optimizing its inventory levels to maintain efficiency and profitability in the long run.
Peer comparison
Sep 30, 2024