Azenta Inc (AZTA)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.31 | 7.09 | 9.95 | 22.23 | 7.37 | |
| DOH | days | 57.88 | 51.49 | 36.68 | 16.42 | 49.53 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.31
= 57.88
The days of inventory on hand (DOH) for Azenta Inc have shown a fluctuating trend over the past five years. In 2019, the company had 78.13 days of inventory on hand, which increased to 81.03 days in 2020. Subsequently, there was a notable increase to 81.68 days in 2021, followed by a significant jump to 104.11 days in 2022. The trend continued with a further increase to 116.42 days in 2023.
The increasing trend in DOH suggests that Azenta Inc is taking longer to sell its inventory, which may indicate potential issues with inventory management, demand forecasting, or sales performance. This can tie up working capital in inventory and result in higher carrying costs and potential obsolescence risks.
It is important for Azenta Inc to closely monitor and analyze the reasons behind the increasing DOH trend and take appropriate measures to optimize inventory levels, improve forecasting accuracy, and enhance sales strategies in order to maintain a healthy balance between inventory management and sales efficiency.
Peer comparison
Sep 30, 2023