Astec Industries Inc (ASTE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.84 | 2.93 | 3.06 | 3.08 | 3.16 | 3.02 | 3.08 | 3.09 | 3.61 | 3.56 | 3.83 | 4.02 | 3.95 | 4.09 | 4.14 | 3.58 | 3.51 | 3.07 | 2.89 | 2.98 | |
| DOH | days | 128.40 | 124.75 | 119.35 | 118.36 | 115.43 | 121.03 | 118.38 | 118.25 | 101.06 | 102.45 | 95.31 | 90.88 | 92.42 | 89.24 | 88.14 | 101.85 | 103.86 | 118.78 | 126.34 | 122.54 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.84
= 128.40
To analyze Astec Industries Inc.'s days of inventory on hand (DOH), we calculate the average DOH for each quarter provided:
Average DOH for 2023:
(165.07 + 158.39 + 148.81 + 146.87) / 4 = 154.03 days
Average DOH for 2022:
(142.11 + 152.88 + 150.28 + 150.71) / 4 = 149.50 days
The trend indicates that Astec Industries Inc. experienced an increase in average DOH from 149.50 days in 2022 to 154.03 days in 2023. This suggests that the company's inventory turnover rate has decreased, meaning that it is taking longer for the company to sell its inventory.
A higher DOH could imply potential issues such as overstocking, slow-moving inventory, or declining sales. It may also indicate inefficiencies in inventory management, potentially leading to higher carrying costs and reduced liquidity.
Astec Industries Inc. should closely monitor its inventory levels and sales performance to optimize its inventory management practices and improve its overall operational efficiency.
Peer comparison
Dec 31, 2023