Powell Industries Inc (POWL)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.60 | 9.87 | 10.28 | 15.52 | 17.02 | |
| DOH | days | 38.03 | 36.97 | 35.50 | 23.52 | 21.44 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.60
= 38.03
The days of inventory on hand (DOH) for Powell Industries Inc has shown an increasing trend over the past five years, indicating that the company is holding inventory for a longer period before selling it.
In 2020, the DOH was 21.44 days, which increased to 23.52 days in 2021, and further rose to 35.50 days in 2022. This significant jump in 2022 suggests a notable shift in the company's inventory management practices.
The trend continued in the following years, with the DOH reaching 36.97 days in 2023 and 38.03 days in 2024. This prolonged period of holding inventory may signal potential inefficiencies in the company's supply chain or production processes, leading to increased carrying costs and potential obsolescence risks.
Overall, the increasing DOH trend warrants further investigation into Powell Industries Inc's inventory management strategies to optimize working capital, reduce costs, and enhance operational efficiency.
Peer comparison
Sep 30, 2024