National Presto Industries Inc (NPK)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.44 | 1.62 | 1.68 | 1.79 | 1.75 | 1.41 | 1.74 | 1.85 | 2.03 | 1.91 | 1.99 | 1.99 | 1.98 | 1.93 | 1.84 | 1.80 | 1.84 | 1.70 | 2.09 | 2.42 | |
| DOH | days | 254.16 | 225.25 | 216.66 | 203.61 | 208.37 | 258.99 | 209.28 | 197.63 | 180.21 | 191.06 | 183.36 | 183.39 | 184.73 | 189.52 | 198.73 | 202.50 | 198.30 | 214.31 | 174.44 | 150.93 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.44
= 254.16
The days of inventory on hand (DOH) for National Presto Industries Inc have shown fluctuations over the past few years. The trend indicates that the company has experienced variability in managing its inventory levels efficiently.
In the most recent period, as of December 31, 2023, the DOH stood at 254.16 days, which represents a substantial increase compared to the previous quarter and the same period last year. This suggests that the company may be carrying excess inventory relative to its sales, which could lead to higher carrying costs and potential obsolescence risks.
Looking at historical data, the DOH has ranged from as low as 150.93 days to as high as 258.99 days over the last few years, indicating inconsistencies in inventory management practices. The company has shown an ability to reduce its DOH in certain quarters, but the overall trend remains somewhat volatile.
A high DOH value typically signifies slower inventory turnover, which can tie up working capital and impact profitability. It may be beneficial for National Presto Industries Inc to assess and improve its inventory management strategies to optimize its working capital efficiency and reduce carrying costs associated with excess inventory.
Peer comparison
Dec 31, 2023