Brady Corporation (BRC)
Days of inventory on hand (DOH)
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.81 | 6.83 | 6.33 | 6.32 | 5.97 | 5.72 | 5.43 | 5.41 | 5.61 | 5.45 | 5.00 | 4.65 | 4.29 | 4.54 | 4.46 | 4.57 | 4.07 | 4.56 | 4.77 | 4.86 | |
| DOH | days | 53.62 | 53.40 | 57.67 | 57.75 | 61.15 | 63.79 | 67.22 | 67.43 | 65.10 | 67.01 | 73.01 | 78.46 | 85.18 | 80.36 | 81.91 | 79.93 | 89.58 | 80.03 | 76.57 | 75.16 |
July 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.81
= 53.62
The days of inventory on hand (DOH) for Brady Corporation have shown some fluctuations over the past several periods. The trend indicates a general increase in DOH from around 53 days in Jul 2020 to around 89 days in Oct 2020, before decreasing to around 53 days in Jul 2024. This suggests that Brady Corporation has been managing its inventory levels more efficiently in recent periods.
A lower DOH figure typically indicates that the company is selling its inventory at a faster rate and is able to quickly turn over its inventory into sales. On the other hand, a higher DOH may indicate slower inventory turnover and potential challenges in managing inventory effectively, which can tie up capital and increase carrying costs.
It is essential for Brady Corporation to strike a balance between managing inventory levels efficiently to meet customer demand and avoiding stockouts on one hand, while minimizing the costs associated with holding excess inventory on the other. Continuously monitoring and analyzing the DOH ratio can help the company optimize its inventory management strategies for improved operational efficiency and financial performance.
Peer comparison
Jul 31, 2024