Dorian LPG Ltd (LPG)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 66.07 | 37.94 | 44.65 | 54.04 | 47.11 | |
| DOH | days | 5.52 | 9.62 | 8.17 | 6.75 | 7.75 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 66.07
= 5.52
Dorian LPG Ltd's days of inventory on hand (DOH) has shown fluctuating trends over the past five years. The company's DOH decreased from 9.62 days in 2023 to 5.52 days in 2024, indicating a more efficient management of inventory. This reduction suggests that the company is selling its inventory at a faster rate relative to the previous year, which can lead to lower carrying costs and potential for improved cash flow.
Comparing the DOH to earlier years, Dorian LPG Ltd had a higher DOH of 8.17 days in 2022, 6.75 days in 2021, and 7.75 days in 2020. This indicates that the company has improved its inventory management efficiency significantly in the most recent year. However, it's important for the company to continue monitoring and optimizing its inventory levels to ensure a balance between meeting customer demand and minimizing holding costs.