Greenbrier Companies Inc (GBX)
Days of inventory on hand (DOH)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.90 | 3.95 | 4.25 | 3.87 | 3.56 | 3.28 | 3.28 | 3.01 | 2.76 | 2.62 | 2.64 | 2.86 | 3.57 | 4.33 | 4.61 | 3.92 | 3.87 | 3.83 | 4.01 | 4.17 | |
| DOH | days | 93.49 | 92.32 | 85.82 | 94.34 | 102.49 | 111.44 | 111.38 | 121.45 | 132.48 | 139.07 | 138.08 | 127.41 | 102.37 | 84.25 | 79.24 | 93.02 | 94.29 | 95.24 | 90.96 | 87.51 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.90
= 93.49
Days of Inventory on Hand (DOH) is a crucial financial ratio that indicates how many days a company takes, on average, to sell its inventory. A higher DOH value typically suggests that a company is carrying excess inventory relative to its sales level, which may lead to increased storage costs, obsolescence risks, and reduced liquidity.
Analyzing Greenbrier Companies Inc's historical DOH trend, we observe fluctuations over the past two years. From May 2019 to May 2020, DOH remained relatively stable, ranging between 79.24 days and 95.24 days. However, starting from August 2020, there was a noticeable increase in DOH, peaking at 132.48 days in February 2022. This upward trend indicates that Greenbrier may have been experiencing challenges in efficiently managing its inventory during this period.
Subsequently, there was a slight improvement in inventory management as seen in the decreasing trend from February 2022 to August 2023, reaching a low of 85.82 days. However, the most recent data point for February 2024 shows an increase in DOH to 93.49 days, which could suggest a potential relapse in inventory control effectiveness.
Overall, Greenbrier Companies Inc's DOH has displayed fluctuations over time, indicating varying levels of inventory management efficiency. Investors and stakeholders should closely monitor this ratio to assess the company's ability to effectively manage its inventory levels and maintain optimal working capital utilization.
Peer comparison
Feb 29, 2024