Hillenbrand Inc (HI)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.05 | 3.17 | 3.20 | 3.67 | 4.42 | |
| DOH | days | 90.16 | 115.19 | 114.24 | 99.55 | 82.57 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.05
= 90.16
The Days of Inventory on Hand (DOH) for Hillenbrand Inc has shown fluctuations over the past five years. In 2024, the company was able to manage its inventory more effectively with a DOH of 90.16 days, showing an improvement compared to the previous years. This could indicate better inventory management practices, such as optimizing production levels or streamlining supply chains.
In 2023 and 2022, Hillenbrand had relatively higher DOH figures of 115.19 days and 114.24 days, respectively. This suggests that the company may have had excess inventory on hand, which could lead to higher holding costs and potential obsolescence risks.
In 2021 and 2020, the DOH figures were 99.55 days and 82.57 days, respectively. The decrease in DOH in 2020 could signify more efficient inventory turnover or adjustments made in response to changing market conditions.
Overall, a lower DOH indicates that Hillenbrand Inc is able to sell its inventory at a faster rate. It is essential for the company to strike a balance between having enough inventory to meet demand and avoiding excessive holding costs. Continuous monitoring and improvement of inventory management practices will be crucial for optimizing working capital and maximizing profitability.
Peer comparison
Sep 30, 2024