Vestis Corporation (VSTS)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Inventory turnover | 3.43 | 3.31 | 3.17 | — | |
| DOH | days | 106.29 | 110.20 | 115.17 | — |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.43
= 106.29
The days of inventory on hand (DOH) for Vestis Corporation have demonstrated a decreasing trend over the past three years. The DOH decreased from 115.17 days in 2021 to 110.20 days in 2022, and further declined to 106.29 days in 2023. This reduction indicates that the company has been more efficient in managing its inventory levels and turning over inventory in a shorter period.
The declining trend in DOH suggests that Vestis Corporation has been effectively managing its inventory, resulting in lower holding costs and potentially freeing up capital for other investments or operations. However, it is essential for the company to strike a balance between maintaining adequate inventory levels to meet demand and avoiding stockouts. Continued monitoring of inventory turnover and management practices will be crucial to sustain this positive trend and optimize working capital efficiency.
Peer comparison
Sep 30, 2023