Advanced Drainage Systems Inc (WMS)
Days of inventory on hand (DOH)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.42 | 0.37 | 0.35 | 1.38 | 1.40 | |
| DOH | days | 859.68 | 989.19 | 1,049.21 | 264.68 | 260.11 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.42
= 859.68
The days of inventory on hand (DOH) for Advanced Drainage Systems Inc has shown fluctuating trends over the past five years. From March 31, 2020, to March 31, 2022, the DOH steadily increased from 260.11 days to 1,049.21 days, indicating a significant rise in the number of days it takes for the company to sell its inventory. This prolonged DOH could be a concern as it may indicate inefficiencies in inventory management or potentially slow-moving inventory.
However, there was a sharp decline in the DOH to 264.68 days on March 31, 2021, which could be a positive sign as it suggests the company was able to sell its inventory more efficiently in that particular period.
The most recent DOH figure of 859.68 days on March 31, 2024, shows an improvement compared to the peak in 2022 but remains relatively high. Monitoring this ratio over time will be crucial to assess whether the company is effectively managing its inventory levels to ensure optimal operations and profitability.