Commercial Metals Company (CMC)

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		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	7.93	6.56
DOH	days	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	46.01	55.65

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.80
= 76.05

The days of inventory on hand (DOH) for Commercial Metals Company has shown some fluctuations over the past few years, ranging from 42.98 days to 76.05 days.

In the most recent period, as of February 29, 2024, the DOH stands at 76.05 days, indicating that, on average, the company holds its inventory for approximately 76 days before selling it. This is an increase from the previous period, where the DOH was 67.36 days in November 30, 2023.

Analyzing the trend over the past few years, the DOH has generally been on the higher side, suggesting that the company may be carrying excess inventory relative to its sales demand. However, there was a noticeable decrease in DOH from May 31, 2020, to May 31, 2021, where it went from 55.65 days to 46.55 days, possibly indicating improved inventory management during that period.

Overall, a high DOH can tie up capital in inventory, lead to increased holding costs, and potentially result in obsolescence. It would be beneficial for Commercial Metals Company to closely monitor and optimize its inventory levels to improve operational efficiency and profitability.