Ethan Allen Interiors Inc (ETD)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.00 | 4.03 | 4.32 | 4.21 | 4.42 | 4.53 | 4.34 | 4.18 | 3.85 | 3.53 | 3.88 | 3.92 | 4.21 | 3.66 | 3.19 | 2.57 | 2.12 | 2.21 | 2.30 | 2.19 | |
| DOH | days | 91.18 | 90.54 | 84.49 | 86.77 | 82.67 | 80.59 | 84.05 | 87.42 | 94.73 | 103.34 | 94.19 | 93.20 | 86.71 | 99.79 | 114.31 | 142.28 | 172.58 | 165.46 | 158.67 | 166.98 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.00
= 91.18
The days of inventory on hand (DOH) for Ethan Allen Interiors Inc have exhibited fluctuations over the past years. The trend analysis reveals that the company's DOH has been volatile, with some periods showing significant increases followed by decreases.
On average, the DOH has been around 90-100 days in recent years. The highest DOH was observed in the most recent quarter, June 30, 2024, at 91.18 days, which indicates that the company held inventory for approximately 3 months before selling it.
It is crucial for Ethan Allen Interiors Inc to effectively manage its inventory levels to avoid excessive holding costs or stockouts. A high DOH could suggest inefficient inventory management, tying up capital and potentially leading to obsolescence. In contrast, a low DOH may indicate stockouts and missed sales opportunities.
Further analysis of the components contributing to inventory levels, such as sales trends, production lead times, and supply chain efficiency, would provide deeper insights into the company's inventory management performance and prospects for optimizing working capital utilization.