Cabot Corporation (CBT)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.50 | 5.29 | 5.17 | 4.99 | 5.89 | |
| DOH | days | 66.41 | 69.06 | 70.54 | 73.14 | 61.98 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.50
= 66.41
The days of inventory on hand (DOH) for Cabot Corporation have fluctuated over the past five years, ranging from 61.98 days in 2020 to 73.14 days in 2021. In the most recent year, as of September 30, 2024, the DOH decreased to 66.41 days compared to the prior year.
A lower DOH indicates that the company is managing its inventory more efficiently, potentially reducing carrying costs and the risk of obsolescence. Conversely, a higher DOH may suggest that the company is struggling to sell its inventory, leading to higher carrying costs and potential write-downs.
Overall, a downward trend in DOH can be seen as positive for Cabot Corporation as it may indicate improved inventory management practices. Further analysis should be conducted to understand the underlying factors driving this trend and its impact on the company's overall financial performance.
Peer comparison
Sep 30, 2024