ESCO Technologies Inc (ESE)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 3.51 | 3.03 | 3.23 | |
| DOH | days | 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 | 104.13 | 120.59 | 113.15 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.90
= 125.72
Days of inventory on hand (DOH) measures the average number of days a company holds inventory before selling it. A lower DOH indicates that the company is able to move its inventory quicker, which may suggest efficient inventory management.
Esco Technologies, Inc.'s DOH has fluctuated over the quarters presented. In Q1 2024, the DOH increased to 125.72 days compared to the previous quarter's 115.76 days in Q4 2023. This indicates a slight decrease in inventory turnover efficiency.
Looking back over the past year, the trend shows a general fluctuation in DOH, with some quarters showing improvements in inventory management (eg. Q2 2022 with 133.23 days decreasing to 112.81 days in Q1 2023) and others indicating a need for attention (eg. Q3 2022 with 129.89 days increasing to 133.23 days in Q4 2022).
Overall, Esco Technologies, Inc. should strive to maintain a balance between too much and too little inventory on hand to optimize operational efficiency and working capital management. Further analysis of the company's inventory turnover ratio and comparison with industry benchmarks could provide additional insights into its inventory management effectiveness.
Peer comparison
Dec 31, 2023