Acuity Brands Inc (AYI)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.60 | 9.61 | 7.29 | 4.98 | 6.01 | |
| DOH | days | 42.42 | 37.98 | 50.09 | 73.28 | 60.73 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.60
= 42.42
The Days of Inventory on Hand (DOH) ratio for Acuity Brands Inc has fluctuated over the past five years, indicating varying efficiency in managing inventory levels. The company held inventory for approximately 42.42 days as of August 31, 2024, which was higher compared to the previous year's 37.98 days. This increase suggests a possible buildup of inventory or slower inventory turnover.
In the prior years, the trend in DOH was as follows:
- In August 31, 2023, the DOH was lower at 37.98 days, demonstrating improved inventory management efficiency compared to the 50.09 days in August 31, 2022.
- The DOH increased significantly in August 31, 2022, to 50.09 days, implying a longer period for the company to sell its inventory, potentially tying up more resources in stock.
- August 31, 2021, showed a relatively high DOH of 73.28 days, indicating a significant challenge in managing inventory levels efficiently.
- In August 31, 2020, the DOH was 60.73 days, slightly lower than the previous year but still reflective of an extended period for the company to convert its inventory into sales.
Overall, the fluctuation in the DOH ratio for Acuity Brands Inc suggests potential challenges in inventory management efficiency. Continuous monitoring and improvement in inventory control processes may be necessary to optimize the use of resources and enhance the company's overall operational performance.
Peer comparison
Aug 31, 2024