Insteel Industries Inc (IIIN)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.74 | 5.95 | 5.91 | 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 | |
| DOH | days | 63.59 | 61.31 | 61.74 | 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 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.74
= 63.59
The days of inventory on hand (DOH) of Insteel Industries Inc has shown some fluctuations over the past few quarters.
The average DOH over the past five quarters has been around 73.67 days, indicating that, on average, Insteel holds its inventory for approximately 2.5 months before it is sold.
Looking at the trend, there was a significant increase in DOH from September 2022 to June 2023, reaching a peak of 145.47 days before gradually decreasing in the subsequent quarters.
The decreasing trend in DOH from December 2022 to September 2024 suggests that Insteel has been managing its inventory more efficiently, possibly through better inventory control or demand forecasting.
However, the DOH in the most recent quarter, September 2024, increased slightly compared to the previous quarter, indicating a potential need for closer monitoring of inventory levels to ensure optimal management.
Overall, while Insteel has made progress in reducing its days of inventory on hand, there may still be room for improvement in streamlining its inventory management processes to enhance efficiency and maintain optimal working capital levels.
Peer comparison
Sep 30, 2024