AZZ Incorporated (AZZ)
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 | 17.53 | 9.18 | 8.58 | 8.09 | 7.14 | 5.98 | 4.52 | 2.29 | 3.63 | 2.07 | 2.84 | 3.59 | 3.85 | 7.41 | 7.91 | 7.43 | 8.26 | 6.61 | 6.85 | 6.33 | |
| DOH | days | 20.82 | 39.75 | 42.55 | 45.10 | 51.11 | 61.00 | 80.78 | 159.50 | 100.43 | 176.06 | 128.70 | 101.77 | 94.81 | 49.27 | 46.15 | 49.12 | 44.19 | 55.21 | 53.29 | 57.69 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.53
= 20.82
The analysis of AZZ Incorporated's days of inventory on hand (DOH) over the past few reporting periods reveals fluctuating trends. The DOH has shown variability, indicating potential inventory management challenges.
The data indicates that the company managed to reduce its DOH significantly from 176.06 days as of August 31, 2021, to 20.82 days as of February 29, 2024. This improvement suggests enhanced efficiency in managing inventory levels. However, it is worth noting that the DOH increased again to 39.75 days as of November 30, 2023, from the low point of 20.82 days, reflecting some potential issues in inventory management in the short term.
Moreover, the DOH has experienced fluctuations in the past, reaching a peak of 159.50 days as of May 31, 2022. Such high levels could indicate overstocking or slow-moving inventory, potentially tying up capital and reducing liquidity.
In terms of industry benchmarks, a lower DOH is generally preferred as it signifies faster inventory turnover and better liquidity. AZZ Incorporated may need to focus on maintaining optimal inventory levels to ensure efficient operations and capital utilization.
Overall, a detailed analysis of inventory management practices and trends could provide insights into operational efficiency and future financial performance for AZZ Incorporated.
Peer comparison
Feb 29, 2024