Commercial Metals Company (CMC)

Days of inventory on hand (DOH)

		Aug 31, 2024	May 31, 2024	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
Inventory turnover		7.51	5.02	4.80	5.42	5.49	6.76	6.83	7.06	6.52	5.49	6.09	6.12	6.57	6.79	6.73	7.84	8.14	8.02	7.56	8.49
DOH	days	48.61	72.66	76.05	67.36	66.53	53.98	53.43	51.67	55.99	66.50	59.93	59.65	55.59	53.78	54.21	46.55	44.85	45.54	48.26	42.98

August 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.51
= 48.61

The days of inventory on hand (DOH) for Commercial Metals Company have shown some fluctuation over the past few years. The DOH metric indicates how many days, on average, the company holds its inventory before selling it.

Based on the historical data provided:
- The DOH ranged from a low of 42.98 days in May 2020 to a high of 76.05 days in February 2024.
- There seems to be a general upward trend in DOH from 2020 to early 2024, indicating that the company may be taking longer to turn over its inventory during this period.
- However, in recent quarters, there has been a slight decrease in DOH from the peak observed in February 2024.

It is important for management to closely monitor and manage the DOH metric as a high DOH can tie up working capital in inventory and may indicate inefficiencies in inventory management. Conversely, a very low DOH may suggest stockouts or an aggressive inventory management strategy which could potentially impact customer service levels.

Further analysis of the reasons behind the fluctuations in DOH over time, comparison with industry benchmarks, and consideration of the company's specific operational and market conditions would provide more insights into the efficiency of Commercial Metals Company's inventory management.