Vista Outdoor Inc (VSTO)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.43 | 3.66 | 3.73 | 4.29 | 5.72 | |
| DOH | days | 82.45 | 99.72 | 97.95 | 85.08 | 63.85 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.43
= 82.45
To analyze Vista Outdoor Inc's days of inventory on hand (DOH) over the past five years, we can observe a fluctuating trend. The DOH represents the number of days it takes for a company to sell its average inventory during a specific period. A higher DOH indicates a slower turnover of inventory, which could potentially tie up capital and lead to higher carrying costs.
In 2020, Vista Outdoor had a DOH of 63.85 days, suggesting that the company was able to sell its average inventory relatively quickly. This may indicate effective inventory management or strong demand for its products at that time.
In 2021, the DOH increased to 85.08 days, indicating a slower turnover of inventory compared to the previous year. This could imply either a buildup of excess inventory or a decrease in sales volume during that period.
The trend continued in 2022 with a DOH of 97.95 days and further increased in 2023 to 99.72 days. These higher DOH figures suggest that Vista Outdoor may have been facing challenges in managing its inventory efficiently, potentially leading to higher storage costs and capital being tied up in unsold goods.
In the most recent year, 2024, the DOH decreased to 82.45 days, showing some improvement compared to the previous two years. However, it is still higher than the levels seen in 2020 and 2021, indicating that Vista Outdoor may still be working on optimizing its inventory turnover.
Overall, the fluctuating trend in Vista Outdoor Inc's days of inventory on hand over the past five years highlights the importance of effective inventory management strategies to ensure optimal use of resources and maintain healthy cash flow.
Peer comparison
Mar 31, 2024