Carpenter Technology Corporation (CRS)

Days of inventory on hand (DOH)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Inventory turnover		2.66	2.63	2.68	2.91	2.95	2.77	2.84	3.22	3.46	2.91	2.65	2.91	3.40	3.11	2.86	3.03	3.46	2.70	2.80	2.68
DOH	days	137.41	138.68	136.02	125.31	123.73	131.84	128.46	113.50	105.51	125.53	137.50	125.47	107.36	117.34	127.78	120.60	105.37	135.26	130.39	136.14

June 30, 2025 calculation

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

The analysis of Carpenter Technology Corporation’s days of inventory on hand (DOH) over the specified period reveals notable fluctuations. Beginning at approximately 136.14 days as of September 30, 2020, the DOH decreased to a low of around 105.37 days by June 30, 2021, indicating a period of improved efficiency in inventory management or a reduction in inventory levels. Subsequently, the DOH generally trended upward, reaching approximately 137.50 days by December 31, 2022, reflecting potentially increased inventory holdings or slower inventory turnover.

Between December 31, 2022, and March 31, 2023, there was a slight decline to about 125.53 days, followed by a significant decrease to approximately 105.51 days by June 30, 2023. This reduction may suggest intensified inventory management efforts or changes in sales dynamics during this period. However, the DOH rose again, reaching approximately 125.31 days by September 30, 2023, and continued to fluctuate around this level through subsequent periods, with readings of approximately 128.46 days at December 31, 2023, and 131.84 days at March 31, 2024.

From March 31, 2024, onward, the DOH demonstrated a gradual upward trend, exceeding 130 days in later quarters, culminating at approximately 138.68 days as of March 31, 2025. The upward trajectory indicates a potential accumulation of inventory or reduced turnover relative to sales.

Overall, the company has experienced periods of both improvement and contraction in inventory turnover efficiency, with a general tendency toward longer inventory holding durations in later periods, which could be indicative of strategic inventory accumulation, industry cycles, or shifts in sales patterns. The observed fluctuations underscore the importance of ongoing inventory management strategies to optimize working capital and align inventory levels with sales activity.