Brady Corporation (BRC)
Days of inventory on hand (DOH)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.81 | 5.97 | 5.61 | 4.29 | 4.07 | |
| DOH | days | 53.62 | 61.15 | 65.10 | 85.18 | 89.58 |
July 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.81
= 53.62
The days of inventory on hand (DOH) for Brady Corporation has shown a declining trend over the past five years. In particular, the DOH decreased from 89.58 days in 2020 to 53.62 days in 2024. This indicates that the company has been more efficient in managing its inventory levels, as it is taking fewer days to sell its inventory on hand.
A lower DOH implies that inventory turnover has improved, which may be attributed to better inventory management practices, more accurate demand forecasting, or streamlined production processes. This improvement suggests that Brady Corporation has been able to reduce its inventory holding costs and potentially improve its cash flow by converting inventory into sales at a faster rate.
Overall, the declining trend in the days of inventory on hand for Brady Corporation over the past five years indicates positive operational efficiency in managing its inventory levels. However, it is important for the company to continue monitoring and optimizing its inventory management practices to maintain this positive trend.
Peer comparison
Jul 31, 2024