Matthews International Corporation (MATW)
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 | 5.32 | 5.09 | 5.15 | 5.08 | 5.00 | 4.79 | 4.92 | 5.06 | 5.50 | 5.82 | 6.05 | 6.10 | 5.97 | 5.60 | 5.57 | 5.68 | 5.71 | 5.42 | 5.30 | 5.37 | |
| DOH | days | 68.58 | 71.69 | 70.92 | 71.81 | 72.93 | 76.25 | 74.15 | 72.08 | 66.35 | 62.71 | 60.34 | 59.87 | 61.12 | 65.12 | 65.55 | 64.23 | 63.88 | 67.40 | 68.83 | 68.00 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.32
= 68.58
To analyze Matthews International Corporation's days of inventory on hand (DOH), we observe fluctuations in the DOH ratio over the past several quarters. The trend indicates moderate variability, with DOH ranging from 59.87 days to 76.25 days.
A higher DOH suggests that the company holds inventory for a longer duration before selling, which may tie up capital and increase carrying costs. Conversely, a lower DOH indicates efficient inventory turnover, potentially leading to lower carrying costs and reduced risk of obsolescence.
For Matthews International Corporation, the DOH ratio peaked at 76.25 days in the second quarter of 2023 before gradually declining to 62.71 days in the second quarter of 2022. This decrease suggests improved inventory management efficiency. However, there was a slight increase in DOH in recent quarters, with the ratio hovering around 70 to 72 days.
Further analysis and comparison with industry averages or historical performance are recommended to assess whether the current DOH levels are optimal for Matthews International Corporation's operations.