Eagle Materials Inc (EXP)

Days of Inventory on Hand (DOH) measures the average number of days a company takes to sell its inventory. A higher DOH value indicates that the company holds on to its inventory for a longer period before selling it, which may suggest inefficiencies in inventory management or potential risks related to holding excess inventory.

Looking at the historical trend for Eagle Materials Inc, we can observe that the DOH has been fluctuating over the past five years. In the most recent fiscal year ending on March 31, 2024, the DOH stood at 79.50 days, a notable increase from the previous year's 65.17 days. This increase indicates that Eagle Materials Inc took longer to sell its inventory in the most recent period, which could be a sign of inventory management challenges or potential issues with sales and demand forecasting.

Comparing the DOH to previous years, we see a general upward trend from 59.24 days in March 2022 to 79.50 days in March 2024. This consistent increase in DOH over the years may raise concerns about the company's inventory management practices, as a prolonged holding period for inventory ties up working capital and may lead to higher carrying costs and potential obsolescence risks.

Investors and stakeholders may want to closely monitor Eagle Materials Inc's inventory management strategies and efficiency in order to ensure that the company is effectively managing its inventory levels to support sustainable growth and profitability. A higher DOH value could potentially impact the company's liquidity, profitability, and overall financial performance.