REX American Resources Corporation (REX)

Days of inventory on hand (DOH)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Inventory turnover		17.40	27.24	16.54	16.04	9.59
DOH	days	20.98	13.40	22.06	22.76	38.05

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.40
= 20.98

The days of inventory on hand (DOH) for REX American Resources Corporation has shown a declining trend over the past five years. In January 2021, the DOH was 38.05 days, indicating that, on average, the company held inventory for approximately 38 days before selling it.

By January 2025, the DOH had decreased to 20.98 days, suggesting that REX American Resources Corporation has been more efficient in managing its inventory, reducing the time it takes to sell its products. This improvement in inventory turnover could be attributed to better inventory management practices, streamlined supply chain processes, or more effective sales strategies.

A lower DOH is generally considered favorable as it signifies that the company is able to quickly convert its inventory into sales, minimizing carrying costs and potential obsolescence risks. Overall, the decreasing trend in REX American Resources Corporation's DOH over the past years reflects a positive development in its inventory management efficiency.