Monro Muffler Brake Inc (MNRO)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.26 | 0.29 | 0.27 | 0.23 | 0.18 | |
| DOH | days | 1,399.00 | 1,254.16 | 1,369.09 | 1,584.95 | 2,023.42 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.26
= 1,399.00
Monro Muffler Brake Inc's days of inventory on hand (DOH) has exhibited fluctuations over the past five years, with Mar 31, 2020, reflecting the highest DOH at 2,023.42 days, which has gradually decreased to 1,399.00 days by Mar 31, 2024. This reduction indicates that the company has been able to manage its inventory levels more efficiently in recent years.
However, despite the decrease in DOH, Monro Muffler Brake Inc continues to hold its inventory for a significant amount of time, as evidenced by the figures ranging from 1,399.00 days to 1,254.16 days over the last two years. This prolonged holding period may suggest potential challenges in inventory management and liquidity, as tied-up capital in inventory could impact the company's cash flow and profitability.
Overall, the trend in Monro Muffler Brake Inc's DOH reflects efforts to enhance inventory turnover and optimize working capital, but there remains room for further improvement in inventory management practices to achieve a more optimal balance between maintaining sufficient inventory levels and reducing holding costs.
Peer comparison
Mar 31, 2024