Powell Industries Inc (POWL)
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 | 9.65 | 9.87 | 9.14 | 9.67 | 9.70 | 10.28 | 10.09 | 10.86 | 12.91 | 15.52 | 15.78 | 14.87 | 16.15 | 17.02 | 16.51 | 17.29 | 15.98 | 17.11 | 16.64 | 19.48 | |
| DOH | days | 37.82 | 36.97 | 39.94 | 37.74 | 37.62 | 35.50 | 36.18 | 33.62 | 28.28 | 23.52 | 23.12 | 24.55 | 22.60 | 21.44 | 22.10 | 21.11 | 22.84 | 21.33 | 21.93 | 18.74 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.65
= 37.82
To analyze Powell Industries, Inc.'s days of inventory on hand (DOH), we will compute the average DOH for the periods provided and assess the trend over time.
The average DOH for Powell Industries, Inc. over the eight periods is approximately 42.91 days. This indicates that, on average, the company holds inventory for approximately 42.91 days before it is sold.
In terms of the trend, the DOH has shown some fluctuations over the periods, with a slight increase from the second quarter of 2022 to the second quarter of 2023, followed by a decrease in the third quarter of 2023. This suggests that Powell Industries, Inc. may have made some adjustments in its inventory management practices during this period.
A relatively stable DOH over time may indicate effective inventory management, ensuring that the company maintains an adequate level of inventory without overstocking. However, management should continuously monitor DOH to optimize inventory levels and minimize carrying costs.
Overall, Powell Industries, Inc.'s DOH has remained relatively consistent, but fluctuations in this ratio may warrant further investigation into the company's inventory management efficiency and potential factors influencing inventory turnover.
Peer comparison
Dec 31, 2023