Carpenter Technology Corporation (CRS)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		3.57	3.96	3.88	4.22	3.07
DOH	days	102.17	92.09	94.10	86.53	118.92

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.57
= 102.17

The days of inventory on hand (DOH) for Carpenter Technology Corporation has shown variability over the past five years. The trend indicates that the company has been able to manage its inventory levels more efficiently in recent years.

In 2024, the DOH was 102.17 days, which was an increase from the previous year but still lower than the peak in 2020. This suggests that the company may have slightly higher inventory levels relative to sales volume, which could indicate a potential inefficiency in managing inventory turnover.

Comparing 2024 to 2022 and 2023, the DOH has increased, indicating that the company may be carrying more inventory relative to its sales volume. It is essential for the company to closely monitor its inventory levels to ensure optimal utilization of resources and minimize carrying costs.

Overall, while the recent increase in DOH raises some concerns, Carpenter Technology Corporation has managed to improve its inventory management compared to previous years. Further analysis of inventory turnover and sales growth is recommended to gain a comprehensive understanding of the company's inventory efficiency.