Varex Imaging Corp (VREX)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.17 | 1.90 | 2.43 | 2.02 | 2.11 | |
| DOH | days | 167.94 | 192.17 | 150.11 | 181.07 | 172.92 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.17
= 167.94
The days of inventory on hand (DOH) for Varex Imaging Corp has fluctuated over the past five years. In particular, as of September 30, 2023, the company had an average of approximately 167.94 days worth of inventory on hand. This represents a decrease from the previous year's DOH of 192.17 days.
The downward trend from 2022 to 2023 may suggest that Varex Imaging Corp has become more efficient in managing its inventory levels. Lower DOH indicates that the company is selling its inventory more quickly, which could lead to reduced carrying costs and potentially improved cash flow.
When comparing the current DOH to that of previous years, it is evident that Varex Imaging Corp's inventory management has improved compared to 2020 and 2019 when the DOH was recorded at 181.07 days and 172.92 days, respectively. However, the current DOH is still higher than the DOH reported in 2021, which was 150.11 days, indicating that there may still be room for further optimization in inventory management.
Overall, the downward trend in days of inventory on hand for Varex Imaging Corp signifies potential improvements in operational efficiency and inventory management practices, which could positively impact the company's financial performance and overall competitiveness in the market.
Peer comparison
Sep 30, 2023