Insteel Industries Inc (IIIN)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.65 | 3.18 | 5.93 | 6.04 | 6.01 | |
| DOH | days | 64.59 | 114.60 | 61.51 | 60.39 | 60.76 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.65
= 64.59
The days of inventory on hand (DOH) ratio for Insteel Industries, Inc. reflects the number of days it takes for the company to sell its inventory. Looking at the trend over the past five years, we can see that in 2023, the DOH decreased significantly to 64.59 days from 114.60 days in 2022. This suggests that the company has been more efficient in managing its inventory, possibly by selling products at a faster rate or implementing more effective inventory management practices.
Compared to 2021, the DOH ratio remained relatively flat, indicating consistent inventory management practices during that period. Similarly, in 2020 and 2019, the DOH ratio remained relatively stable around 60 days, reflecting a consistent approach to inventory management during those years.
Overall, the decreasing trend in the DOH ratio from 2022 to 2023 indicates an improvement in Insteel Industries' inventory management efficiency, potentially leading to better cash flow and working capital management.
Peer comparison
Sep 30, 2023