Greif Bros Corporation (GEF)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Inventory turnover		10.59	10.96	10.18	10.06	10.96	12.03	10.90	11.19	10.90	12.56	10.78	10.65	9.84	8.94	9.00	10.22	10.86	12.26	10.42	11.07
DOH	days	34.46	33.31	35.86	36.29	33.31	30.35	33.49	32.62	33.48	29.07	33.84	34.27	37.10	40.83	40.53	35.70	33.62	29.77	35.02	32.96

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.59
= 34.46

The days of inventory on hand (DOH) for Greif Bros Corporation have shown fluctuations over the reported period. The DOH indicates the average number of days that inventory is held before being sold or used.

In April 2020, the DOH stood at 32.96 days, showing an efficient management of inventory. However, by July 2021, the DOH increased significantly to 40.53 days, suggesting a possible build-up of inventory or slower sales turnover. This trend continued until October 2021, with a slight increase to 40.83 days.

Subsequently, there was a decline in DOH in the following quarters, reaching a low of 29.07 days by October 2022. This reduction could imply better inventory management practices, possibly due to improved forecasting or demand planning.

The DOH fluctuated around the 30s range in the later periods, with occasional peaks and troughs. Overall, maintaining a relatively stable DOH in this range is essential for balancing the costs of holding inventory against meeting customer demand in a timely manner.

In conclusion, monitoring and analyzing the DOH metric for Greif Bros Corporation can provide insights into inventory management efficiency, helping the company optimize working capital and improve operational performance.