ESCO Technologies Inc (ESE)
Days of inventory on hand (DOH)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.98 | 2.77 | 2.83 | 2.90 | 3.15 | 2.96 | 3.00 | 2.99 | 3.24 | 2.80 | 2.73 | 2.75 | 3.02 | 3.17 | 3.04 | 3.13 | 3.39 | 2.99 | 3.20 | 3.30 | |
| DOH | days | 122.59 | 131.58 | 128.95 | 125.72 | 115.76 | 123.20 | 121.62 | 122.05 | 112.81 | 130.22 | 133.59 | 132.75 | 120.68 | 115.11 | 120.15 | 116.53 | 107.75 | 122.25 | 113.89 | 110.57 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.98
= 122.59
Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days it takes for a company to sell its inventory. A lower DOH value indicates that the company is able to efficiently manage its inventory levels and sell its products quickly.
Analyzing the DOH trend for ESCO Technologies Inc over the past years shows fluctuations in the number of days it takes for the company to turn over its inventory. The DOH has ranged from 107.75 days to 133.59 days, with the most recent value for September 30, 2024, standing at 122.59 days.
The upward trend in DOH from the most recent quarter indicates that ESCO Technologies Inc may be facing challenges in managing its inventory effectively and converting it into sales. A higher DOH can tie up capital in inventory and potentially lead to carrying costs and obsolescence risk.
Furthermore, comparing the current DOH value to historical data reveals a relatively stable operational performance in managing inventory levels over the past few years, with occasional spikes in the DOH metric.
In conclusion, ESCO Technologies Inc should focus on optimizing its inventory management processes to reduce the number of days inventory is held, thereby improving cash flow and profitability. Monitoring and analyzing the DOH ratio over time can provide valuable insights into the company's operational efficiency and effectiveness in managing its inventory.
Peer comparison
Sep 30, 2024