Carpenter Technology Corporation (CRS)

Days of inventory on hand (DOH)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Inventory turnover		2.66	2.96	3.46	3.40	3.46
DOH	days	137.41	123.39	105.51	107.37	105.37

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.66
= 137.41

The days of inventory on hand (DOH) for Carpenter Technology Corporation over the specified periods indicates a pattern of inventory management and efficiency. As of June 30, 2021, the DOH was approximately 105.37 days, reflecting the period it took the company to convert inventory into sales during that year. This figure remained relatively stable through June 30, 2022, with a slight increase to 107.37 days, suggesting a modest elongation in inventory holding periods, potentially due to changes in production, supply chain considerations, or demand fluctuation.

By June 30, 2023, the DOH slightly decreased to 105.51 days, aligning closely with the previous year, which could indicate a stabilization in inventory turnover or adjustments aimed at maintaining operational efficiency.

However, a notable shift is observed in the subsequent years. As of June 30, 2024, the DOH surged to approximately 123.39 days, representing a substantial increase of around 17.88 days from the previous year. This increase suggests that inventory was held for a longer duration before being sold, possibly reflecting overstocking, reduced sales velocity, or strategic inventory buildup in anticipation of future demand.

The trend continued into June 30, 2025, with the DOH reaching approximately 137.41 days. This further extension underscores a significant elongation in inventory turnover time, which can imply potential concerns regarding overstocking, decreased sales activity, or inefficiencies in inventory management. Such an increase in DOH might impact working capital utilization and could signal underlying issues needing strategic adjustment to optimize inventory levels and improve cash flow.

Overall, the historical pattern demonstrates relative inventory management stability through 2022 and 2023, followed by a pronounced and sustained increase in inventory hold times beginning in 2024. This trend warrants further investigation into underlying causes such as market conditions, operational strategies, or external economic factors influencing inventory dynamics.