Acuity Brands Inc (AYI)
Days of inventory on hand (DOH)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.06 | 9.44 | 9.61 | 8.95 | 8.36 | 7.44 | 7.28 | 4.42 | 4.64 | 5.26 | 5.54 | 8.14 | 9.10 | 9.43 | 9.44 | 8.54 | 9.08 | 9.01 | 9.51 | 7.87 | |
| DOH | days | 40.28 | 38.67 | 37.98 | 40.77 | 43.67 | 49.06 | 50.12 | 82.51 | 78.70 | 69.45 | 65.85 | 44.84 | 40.11 | 38.70 | 38.67 | 42.75 | 40.21 | 40.50 | 38.39 | 46.37 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.06
= 40.28
Days of Inventory on Hand (DOH) is a crucial financial ratio that measures how efficiently a company manages its inventory levels. A lower DOH indicates that a company is selling its inventory quickly, while a higher DOH suggests slower turnover of inventory.
Analyzing the DOH trend for Acuity Brands Inc over the past two years shows some fluctuation in inventory management. The company's DOH ranged from a low of 37.98 days to a high of 82.51 days, indicating variability in their inventory turnover efficiency.
In the most recent period, as of February 29, 2024, Acuity Brands Inc had a DOH of 40.28 days, which is slightly higher compared to the previous quarter's figure of 38.67 days. This increase suggests that the company may be holding onto inventory for a longer period, potentially tying up working capital.
Looking back further, there was a significant spike in DOH to 82.51 days as of May 31, 2022, which could indicate inventory management challenges or a change in the company's sales patterns during that period.
Overall, while Acuity Brands Inc has shown some variability in its DOH over the past two years, it is important for the company to closely monitor and optimize its inventory management processes to ensure efficient use of resources and maintain a healthy balance between inventory levels and sales demand.
Peer comparison
Feb 29, 2024