Insteel Industries Inc (IIIN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.09 | 5.88 | 4.75 | 4.81 | 3.94 | 2.62 | 2.51 | 3.48 | 3.43 | 3.54 | 3.76 | 3.57 | 5.51 | 6.54 | 5.89 | 6.23 | 6.88 | 6.37 | 4.18 | 3.55 | |
| DOH | days | 59.96 | 62.07 | 76.88 | 75.93 | 92.71 | 139.40 | 145.47 | 104.79 | 106.50 | 103.00 | 97.12 | 102.17 | 66.20 | 55.80 | 61.92 | 58.58 | 53.08 | 57.31 | 87.32 | 102.85 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.09
= 59.96
The days of inventory on hand (DOH) for Insteel Industries Inc have shown fluctuations over the past five years. There was a notable increase in DOH from the end of 2020 to the third quarter of 2022, reaching a peak of 145.47 days. This extended period suggests that Insteel held inventory for a longer duration before converting it into sales.
From the third quarter of 2022 to the third quarter of 2023, there was a significant decrease in DOH, indicating that the company managed its inventory more efficiently, possibly by streamlining operations or implementing better inventory management practices.
However, it is important to note that DOH increased again in the most recent quarter, signaling a potential concern as inventory turnover may have slowed down. A higher DOH could lead to increased carrying costs and tie up valuable capital in inventory.
Overall, a careful analysis of the reasons behind these fluctuations is warranted to assess the effectiveness of Insteel Industries Inc's inventory management strategies and their impact on the company's financial performance.
Peer comparison
Dec 31, 2023