AeroVironment Inc (AVAV)
Days of inventory on hand (DOH)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.76 | 5.14 | 4.72 | 4.25 | 6.07 | |
| DOH | days | 96.98 | 71.06 | 77.38 | 85.94 | 60.11 |
April 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.76
= 96.98
The days of inventory on hand (DOH) for AeroVironment Inc has shown fluctuations over the past five years. The trend indicates that the company has been holding inventory for a longer period as seen by the increasing DOH from 60.11 days in 2020 to 96.98 days in 2024. This suggests that AeroVironment Inc may be facing challenges in managing its inventory efficiency.
An increasing DOH can also indicate slowing sales or production inefficiencies, potentially leading to higher storage and holding costs. It is important for the company to closely monitor and optimize its inventory management to improve operational efficiency and free up working capital.
Overall, the upward trend in the DOH for AeroVironment Inc highlights a potential area of concern that requires attention to ensure the company's operations remain efficient and competitive.
Peer comparison
Apr 30, 2024