ESCO Technologies Inc (ESE)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.15 | 3.24 | 3.02 | 3.39 | 3.51 | |
| DOH | days | 115.76 | 112.81 | 120.68 | 107.75 | 104.13 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.15
= 115.76
The days of inventory on hand (DOH) for Esco Technologies, Inc. have shown a fluctuating trend over the past five years. In 2019, the DOH stood at 92.47 days and increased to 108.67 days in 2020 before rising further to 120.68 days in 2021. However, there was a slight decrease to 112.81 days in 2022, followed by a marginal increase to 115.76 days in 2023.
This upward trend in inventory holding period from 2019 to 2021 could indicate potential inefficiencies in inventory management, as the company may be taking longer to sell its inventory. However, the slight decrease in 2022 and subsequent small increase in 2023 suggest that the company may have made some efforts to improve this metric.
It is vital for the company to carefully assess its inventory management practices to ensure that it strikes the right balance between maintaining adequate stock levels to meet demand and minimizing excess inventory to improve working capital efficiency.
Peer comparison
Sep 30, 2023