Advanced Drainage Systems Inc (WMS)
Days of inventory on hand (DOH)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.71 | 3.85 | 3.67 | 3.64 | 3.72 | 4.25 | 4.55 | 4.23 | 4.21 | 4.46 | 4.43 | 4.21 | 3.98 | 3.86 | 3.78 | 4.36 | 4.30 | 5.18 | 5.33 | 5.02 | |
| DOH | days | 98.46 | 94.79 | 99.47 | 100.22 | 98.02 | 85.94 | 80.30 | 86.35 | 86.73 | 81.91 | 82.47 | 86.61 | 91.64 | 94.52 | 96.48 | 83.78 | 84.98 | 70.42 | 68.45 | 72.67 |
March 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.71
= 98.46
Days of Inventory on Hand (DOH) is a crucial financial ratio that measures the number of days it takes for a company to sell its entire inventory. For Advanced Drainage Systems Inc, the DOH has fluctuated over the provided period.
From June 30, 2020, to September 30, 2021, the DOH showed a decreasing trend, indicating the company was managing its inventory efficiently. However, there was a notable increase in DOH from March 31, 2021, to September 30, 2021, suggesting a potential issue with inventory management or a change in sales patterns.
Subsequently, from September 30, 2021, to March 31, 2024, the DOH fluctuated around the mid to high 80s, indicating that the company was maintaining a relatively stable inventory turnover period. The spike seen from March 31, 2024, to September 30, 2024, followed by a slight decrease by December 31, 2024, could be a result of seasonal variations or changes in demand.
Overall, the trend in Advanced Drainage Systems Inc's DOH shows some level of volatility, with occasional spikes and drops. Analyzing the DOH alongside other operational and financial metrics can provide a more comprehensive understanding of the company's inventory management efficiency and its impact on financial performance.