Winnebago Industries Inc (WGO)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.56 | 6.80 | 8.33 | 9.44 | 12.31 | |
| DOH | days | 55.68 | 53.70 | 43.81 | 38.66 | 29.65 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.56
= 55.68
The days of inventory on hand (DOH) for Winnebago Industries Inc has shown an increasing trend over the past five years, with the numbers being 55.68 days in 2024, 53.70 days in 2023, 43.81 days in 2022, 38.66 days in 2021, and 29.65 days in 2020. This trend indicates that the company's inventory turnover has been slowing down, meaning it is taking longer for Winnebago to sell its inventory.
A higher number of days of inventory on hand suggests that the company may be carrying excess inventory levels or facing challenges in selling its products efficiently. It can also indicate potential issues with inventory management, such as overproduction, slow-moving inventory, or inadequate demand forecasting.
Winnebago should closely monitor its inventory levels and implement strategies to optimize inventory turnover to improve efficiency and reduce carrying costs associated with excess inventory. Additionally, the company may need to review its production and sales processes to align them more effectively with customer demand in order to maintain a healthy balance between inventory levels and sales.
Peer comparison
Aug 31, 2024