ESCO Technologies Inc (ESE)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.98 | 3.15 | 3.24 | 3.02 | 3.39 | |
| DOH | days | 122.59 | 115.76 | 112.81 | 120.68 | 107.75 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.98
= 122.59
ESCO Technologies Inc's days of inventory on hand (DOH) has shown some fluctuations over the past five years, varying from a low of 107.75 days in 2020 to a high of 122.59 days in 2024. Generally, the company has managed to keep its inventory levels relatively stable, with slight increases and decreases seen over the years.
An upward trend in DOH indicates that the company is taking longer to sell its inventory, which could result in higher carrying costs and potential obsolescence issues. Conversely, a decrease in DOH signifies that ESCO Technologies Inc is turning over its inventory more quickly, which can be a sign of efficient inventory management.
It would be beneficial for the company to further analyze the reasons behind the fluctuations in its DOH and assess the impact on its overall operations and financial performance. This analysis could help ESCO Technologies Inc optimize its inventory management strategies to ensure efficient use of resources and maximize profitability.
Peer comparison
Sep 30, 2024