Edgewell Personal Care Co (EPC)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.66 | 2.87 | 3.29 | 3.40 | 3.29 | |
| DOH | days | 137.11 | 127.01 | 111.06 | 107.27 | 111.02 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.66
= 137.11
Days of Inventory on Hand (DOH) measures the average number of days it takes for a company to sell its inventory. A higher number indicates a longer time period, which could imply slower inventory turnover and potential excess inventory.
Edgewell Personal Care Co's DOH has increased steadily over the last five years, from 111.02 days in 2019 to 137.11 days in 2023. This suggests a lengthening in the time it takes for the company to sell its inventory.
A rising DOH may indicate inefficiencies in inventory management, such as overstocking or slowing sales. This could tie up working capital and potentially lead to increased carrying costs. It's essential for shareholders and management to monitor this trend closely, as it could signify challenges in forecasting demand or supply chain disruptions.
Overall, Edgewell Personal Care Co's increasing DOH warrants attention and highlights potential areas for operational improvements in inventory management to optimize working capital and streamline operations.
Peer comparison
Sep 30, 2023