REX American Resources Corporation (REX)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Inventory turnover		17.40	19.49	21.06	25.07	27.06	20.22	17.09	19.75	16.42	18.75	15.17	12.74	16.12	21.05	13.29	15.40	9.48	16.38	11.06	14.57
DOH	days	20.98	18.73	17.33	14.56	13.49	18.06	21.36	18.48	22.23	19.47	24.07	28.66	22.65	17.34	27.46	23.70	38.51	22.28	33.01	25.06

January 31, 2025 calculation

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

The days of inventory on hand (DOH) ratio for REX American Resources Corporation has shown some fluctuations over the past few years. The company's DOH has ranged from a high of 38.51 days on January 31, 2021, to a low of 13.49 days on January 31, 2024.

On average, the company tends to hold inventory for around 20-25 days, with occasional fluctuations both above and below this range. The trend in recent periods reflects a pattern of moderate variability in inventory holding periods, with occasional spikes or declines in the DOH ratio.

Overall, a DOH ratio that is too high may indicate an inefficient management of inventory, potentially leading to increased storage costs or obsolescence. Conversely, a DOH ratio that is too low may suggest stockouts or missed sales opportunities. Hence, it is essential for the company to closely monitor and manage its inventory levels to strike a balance between holding enough stock to meet demand and minimizing excess inventory.