WD-40 Company (WDFC)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.82 | 4.84 | 3.88 | 4.02 | 4.49 | |
| DOH | days | 62.71 | 75.42 | 94.02 | 90.70 | 81.20 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.82
= 62.71
The days of inventory on hand (DOH) for WD-40 Company have fluctuated over the past five years. In the most recent fiscal year ending on August 31, 2024, the company held inventory for an average of 62.71 days, which was a decrease from the previous year's DOH of 75.42 days. This improvement suggests that WD-40 Company managed its inventory more efficiently in the latest period.
Comparing to the data from two years ago, the DOH has significantly reduced from 94.02 days in August 2022 to 62.71 days in August 2024. This sharp decline indicates a notable enhancement in the company's inventory management practices.
When looking at a longer-term trend, WD-40 Company has shown a general downward trend in its DOH over the past five years. The DOH decreased from 81.20 days in August 2020 to 62.71 days in August 2024. This consistent reduction in DOH reflects the company's efforts in streamlining its inventory control processes and optimizing its supply chain management.
Overall, the decreasing trend in WD-40 Company's days of inventory on hand over the years demonstrates an improvement in inventory turnover efficiency, indicating effective inventory management strategies implemented by the company. It suggests that WD-40 Company has been able to better balance its inventory levels to meet demand while reducing excess inventory, which can positively impact the company's profitability and cash flow.
Peer comparison
Aug 31, 2024