Advanced Drainage Systems Inc (WMS)
Days of inventory on hand (DOH)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.71 | 3.72 | 4.21 | 3.98 | 4.30 | |
| DOH | days | 98.46 | 98.02 | 86.73 | 91.64 | 84.98 |
March 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.71
= 98.46
Based on the provided data, Advanced Drainage Systems Inc's days of inventory on hand (DOH) have shown a fluctuating trend over the past five years.
- As of March 31, 2021, the company had 84.98 days of inventory on hand, indicating that it held inventory for approximately 85 days before selling it.
- By March 31, 2022, the DOH had increased to 91.64 days, suggesting a slight increase in the time it took to sell inventory.
- The DOH decreased slightly to 86.73 days by March 31, 2023, indicating a more efficient management of inventory levels compared to the prior year.
- However, there was a notable increase in the DOH by March 31, 2024, reaching 98.02 days, which may suggest potential challenges in managing inventory turnover efficiently.
- The trend continued with a DOH of 98.46 days as of March 31, 2025, indicating that the company was holding inventory for nearly 100 days before selling it, which could potentially lead to higher carrying costs and reduced liquidity.
Overall, the analysis of Advanced Drainage Systems Inc's DOH suggests fluctuations in inventory management efficiency over the period, with potential implications for working capital and operational performance. Monitoring and addressing inventory levels and turnover could be crucial for optimizing the company's financial health and performance in the future.