Mueller Water Products (MWA)

Days of inventory on hand (DOH)

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Inventory turnover 2.84 3.01 3.17 4.07 3.91
DOH days 128.69 121.33 115.19 89.59 93.27

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.84
= 128.69

The data indicates that Mueller Water Products’ days of inventory on hand (DOH) has experienced fluctuations over the observed period from September 30, 2020, to September 30, 2024. Specifically, the DOH decreased from 93.27 days in 2020 to 89.59 days in 2021, suggesting an improvement in inventory management or a reduction in inventory levels relative to sales during that period. However, thereafter, the DOH increased substantially to 115.19 days in 2022, indicating a lengthening of inventory holding periods, which could be due to factors such as increased inventory buildup, supply chain disruptions, or strategic stockpiling. The upward trend continued into 2023 and 2024, with DOH reaching 121.33 days and then 128.69 days, respectively. This consistent increase over the last two years reflects a sustained elongation in inventory days, possibly signaling challenges in inventory turnover or adjustments in manufacturing and procurement strategies. Overall, the trend highlights a rising inventory holding period, which warrants further examination into underlying causes such as changes in sales velocity, supply chain conditions, or inventory policies.