Thor Industries Inc (THO)
Days of inventory on hand (DOH)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.04 | 6.37 | 8.42 | 8.33 | 10.88 | |
| DOH | days | 51.85 | 57.26 | 43.33 | 43.80 | 33.56 |
July 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.04
= 51.85
To analyze Thor Industries Inc's days of inventory on hand (DOH) over the past five years:
1. The trend in DOH has been fluctuating, with an increase from 33.56 days in 2020 to 57.26 days in 2023, followed by a decrease to 51.85 days in 2024.
2. A higher number of days of inventory on hand implies that the company is holding onto inventory for a longer period before selling it, which could tie up working capital and potentially indicate inefficiencies in inventory management.
3. In 2022 and 2023, DOH was relatively high compared to the other years, suggesting potential challenges in inventory turnover and control during those periods.
4. The decrease in DOH from 2023 to 2024 could indicate improvements in inventory management efficiency or adjustments in production levels to better align with demand.
5. Overall, Thor Industries Inc should continue to monitor its DOH ratio to ensure optimal inventory levels that strike a balance between meeting customer demand and efficiently managing working capital.
Peer comparison
Jul 31, 2024