Vestis Corporation (VSTS)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.59 | 3.43 | 3.31 | 3.17 | — | |
| DOH | days | 23.41 | 106.29 | 110.20 | 115.17 | — |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.59
= 23.41
The days of inventory on hand (DOH) for Vestis Corporation has shown a decreasing trend over the past four years. The DOH decreased significantly from 115.17 days in 2021 to 110.20 days in 2022, and further dropped to 106.29 days in 2023. This downward trend continued in 2024, with DOH reaching 23.41 days, reflecting a substantial improvement in inventory management efficiency.
The decrease in DOH indicates that Vestis Corporation has been able to sell its inventory more quickly in recent years, reducing the average time it takes to turn inventory into sales. This may suggest better demand forecasting, inventory control, and potentially more effective sales and marketing strategies.
Overall, the declining trend in DOH is a positive sign for Vestis Corporation, as it implies better working capital management, reduced carrying costs, and improved liquidity. However, it is essential for the company to continue monitoring and optimizing its inventory levels to ensure efficient operations and sustainable business performance.
Peer comparison
Sep 30, 2024