CSW Industrials Inc (CSWI)
Days of inventory on hand (DOH)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.49 | 2.93 | 2.72 | 2.47 | 2.39 | |
| DOH | days | 146.66 | 124.46 | 134.12 | 147.90 | 152.73 |
March 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.49
= 146.66
The days of inventory on hand (DOH) for CSW Industrials Inc have shown a downward trend over the past five years, decreasing from 152.73 days as of March 31, 2021, to 146.66 days as of March 31, 2025. This indicates that the company has been more efficient in managing its inventory levels, being able to turn over its inventory more quickly in recent years.
The decreasing trend in DOH suggests that CSW Industrials Inc may have implemented more effective inventory management strategies, such as improving demand forecasting, optimizing production processes, or enhancing inventory controls. A lower DOH generally signifies better liquidity, as the company is tying up less capital in inventory, which could potentially lead to improved cash flow and profitability.
However, it is also important to consider industry benchmarks and the company's specific operational needs when evaluating the DOH ratio. While a decreasing trend is generally positive, excessively low levels of inventory may indicate stockouts or potential issues with production continuity. Therefore, ongoing monitoring and further analysis of CSW Industrials Inc's inventory management practices are recommended to ensure optimal efficiency and performance.
Peer comparison
Mar 31, 2025