Avnet Inc (AVT)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.84 | 4.27 | 5.03 | 5.34 | 5.70 | |
| DOH | days | 95.09 | 85.41 | 72.57 | 68.32 | 64.04 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.84
= 95.09
Over the past five years, Avnet Inc's days of inventory on hand (DOH) have shown a consistent increasing trend. The company's inventory turnover has lengthened from 64.04 days in 2020 to 95.09 days in 2024. This indicates that, on average, it took Avnet Inc approximately 95.09 days to sell its entire inventory at the end of the fiscal year 2024.
The rising trend in DOH may suggest potential inefficiencies in inventory management, as a higher DOH implies that inventory is being held for a longer period before being sold. This could tie up working capital and increase carrying costs for the company. Avnet Inc may need to review its inventory management practices to optimize its inventory levels and improve its cash flow.
It is advisable for Avnet Inc to closely monitor and analyze its inventory turnover ratios and implement strategies to reduce the number of days of inventory on hand to improve overall operational efficiency and profitability.
Peer comparison
Jun 30, 2024