Astec Industries Inc (ASTE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.31 | 2.21 | 2.57 | 2.79 | 3.14 | |
| DOH | days | 157.89 | 165.07 | 142.11 | 130.80 | 116.21 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.31
= 157.89
The days of inventory on hand (DOH) ratio for Astec Industries Inc has shown an increasing trend over the past five years, starting at 116.21 days as of December 31, 2020, and reaching 157.89 days by December 31, 2024. This indicates that the company is taking longer to turn its inventory into sales, which may suggest inefficiencies in inventory management.
The rise in the DOH ratio could be due to various factors such as overstocking, slow-moving inventory, or declining demand for the company's products. Astec Industries Inc may need to reassess its inventory management strategies to optimize its inventory turnover and liquidity.
A high DOH ratio can tie up working capital and increase storage costs, impacting the company's profitability. It is essential for Astec Industries Inc to closely monitor and control its inventory levels to improve operational efficiency and maintain a competitive edge in the industry.
Peer comparison
Dec 31, 2024