Crane Company (CR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Inventory turnover | 5.09 | ||||
| DOH | days | 71.68 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.09
= 71.68
To calculate the days of inventory on hand (DOH) for Crane Company, we use the formula:
\[DOH = \dfrac{Average Inventory}{Cost of Goods Sold} \times 365 days\]
The information provided only gives the DOH for December 31, 2023, which is 71.68 days. Without the specific values for Average Inventory and Cost of Goods Sold for December 31, 2023, it's difficult to provide a comprehensive analysis.
However, a higher DOH value could indicate that Crane Company is holding onto inventory for a longer period, which may tie up capital and lead to higher holding costs. Conversely, a lower DOH value could imply more efficient inventory management, but could also suggest stockouts and lost sales if inventory levels are too low.
In the absence of further data, it would be advisable to compare the DOH figure to industry benchmarks and historical trends to assess Crane Company's inventory management efficiency accurately.
Peer comparison
Dec 31, 2023