Quanex Building Products (NX)
Days of inventory on hand (DOH)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.08 | 10.19 | 8.33 | 7.96 | 7.45 | 7.88 | 6.80 | 6.97 | 7.39 | 8.99 | 8.49 | 9.16 | 8.91 | 10.77 | 10.21 | 8.95 | 8.88 | 10.34 | 8.25 | 8.13 | |
| DOH | days | 40.22 | 35.83 | 43.82 | 45.83 | 49.01 | 46.30 | 53.69 | 52.40 | 49.42 | 40.62 | 42.98 | 39.83 | 40.97 | 33.90 | 35.75 | 40.80 | 41.13 | 35.30 | 44.26 | 44.92 |
January 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.08
= 40.22
The Days of Inventory on Hand (DOH) ratio for Quanex Building Products has shown some fluctuation over the past several quarters. The DOH measures the number of days it takes for the company to sell its average inventory, indicating how efficiently the company manages its inventory.
From the data provided, we can observe that the DOH has ranged from a low of 33.9 days to a high of 53.69 days over the last two years. A lower DOH is generally favorable as it suggests the company is efficiently managing its inventory levels and turning over inventory quickly. Conversely, a higher DOH may indicate slow sales or excess inventory.
In the most recent quarter, Quanex Building Products had a DOH of 40.22 days, which indicates a moderate efficiency in managing inventory. It is important for the company to monitor this ratio closely to ensure optimal inventory management and avoid issues such as carrying costs, obsolescence, or stockouts.
Overall, the trend of the DOH ratio for Quanex Building Products shows some fluctuations, and it would be beneficial for the company to aim for consistency or a downward trend in this ratio to improve operational efficiency and profitability.
Peer comparison
Jan 31, 2024