Haynes International Inc (HAYN)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.28 | 1.21 | 1.38 | 1.53 | 1.81 | |
| DOH | days | 285.43 | 301.68 | 264.92 | 238.29 | 201.12 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.28
= 285.43
The days of inventory on hand (DOH) for Haynes International Inc. have shown a fluctuating trend over the past five years. In 2023, the DOH decreased to 314.74 days from 339.75 days in 2022, indicating a slight improvement in managing inventory levels. This reduction suggests that the company has been able to sell its inventory at a faster pace compared to the previous year.
However, compared to 2021 and 2020, the DOH has increased, indicating that the company may be holding on to inventory for longer periods, which could tie up capital and increase carrying costs. The significant increase in DOH in 2022 and 2023, compared to 2019, signals a potential concern about the efficiency of inventory management.
Overall, while there was a modest improvement in 2023, Haynes International Inc. may need to focus on optimizing its inventory management to ensure that inventory turnover is maximized, reducing the DOH and improving overall liquidity and efficiency.
Peer comparison
Sep 30, 2023