Kadant Inc (KAI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.14 | 5.12 | 4.87 | 4.77 | 5.23 | 4.83 | 4.42 | 4.25 | 3.52 | 3.66 | 3.58 | 3.75 | 5.10 | 3.52 | 3.84 | 3.65 | 3.75 | 3.75 | 3.86 | 4.31 | |
| DOH | days | 59.42 | 71.27 | 75.00 | 76.54 | 69.84 | 75.57 | 82.61 | 85.86 | 103.77 | 99.61 | 102.01 | 97.31 | 71.64 | 103.84 | 95.17 | 100.09 | 97.27 | 97.45 | 94.58 | 84.66 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.14
= 59.42
The days of inventory on hand (DOH) ratio for Kadant Inc fluctuated over the period from March 31, 2020, to December 31, 2024.
Starting at 84.66 days on March 31, 2020, the DOH increased steadily before peaking at 103.84 days on September 30, 2021. This increase may indicate a buildup of inventory relative to sales, potentially tying up more capital and increasing holding costs.
However, from December 31, 2021, the DOH began to decrease notably, reaching 59.42 days by December 31, 2024. A decrease in DOH could suggest more efficient inventory management, potentially leading to improved liquidity and reduced risk of obsolete inventory.
Overall, the downward trend in the DOH ratio for Kadant Inc from late 2021 to the end of 2024 indicates a positive development in managing inventory levels more effectively and optimizing working capital utilization.
Peer comparison
Dec 31, 2024