AZZ Incorporated (AZZ)
Days of inventory on hand (DOH)
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.98 | 7.14 | 3.01 | 3.85 | 8.26 | |
| DOH | days | 36.58 | 51.11 | 121.30 | 94.81 | 44.19 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.98
= 36.58
In analyzing the days of inventory on hand (DOH) for AZZ Incorporated over the past five years, we observe fluctuations in the efficiency of managing inventory. The trend indicates a decreasing pattern from February 2022 to February 2024, reflecting improvements in inventory management.
In February 2022, the company had a relatively high DOH of 121.30 days, suggesting that inventory turnover was slow, potentially tying up capital in excess inventory. However, the DOH decreased significantly to 51.11 days in February 2023, indicating a positive shift towards more efficient inventory management.
Further progress was made in reducing the DOH to 36.58 days in February 2024, signaling an even more effective inventory turnover. This improvement may result in enhanced cash flow and reduced carrying costs associated with excess inventory.
It is essential for AZZ Incorporated to maintain this downward trend in DOH, as it demonstrates a focus on optimizing inventory levels and balancing the need for sufficient stock with the need to minimize holding costs. Continuous monitoring and adjustment of inventory levels will be crucial to ensure operational efficiency and financial stability.
Peer comparison
Feb 29, 2024