Triumph Group Inc (TGI)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.74 | 2.55 | 2.97 | 3.69 | 5.09 | |
| DOH | days | 133.40 | 143.28 | 123.03 | 98.99 | 71.66 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.74
= 133.40
The Days of Inventory on Hand (DOH) for Triumph Group Inc has shown fluctuating trends over the past five years. The company's inventory turnover has increased from 71.66 days in 2020 to 133.40 days in 2024, indicating that it took longer for the company to sell its inventory in 2024 compared to previous years. This may suggest an accumulation of excess inventory or slower sales during the most recent year.
The rising trend in DOH from 2020 to 2024 could signal potential inefficiencies in inventory management, as a higher number of days of inventory on hand could tie up company funds and increase carrying costs. It may also point to potential risks related to obsolete or slow-moving inventory.
It is important for Triumph Group Inc to closely monitor its inventory levels and implement strategies to optimize inventory turnover in order to improve operational efficiency and maintain healthy liquidity levels. Additionally, a thorough analysis of the factors contributing to the increase in DOH can help the company make informed decisions to streamline its inventory management processes and enhance overall business performance.
Peer comparison
Mar 31, 2024