Worthington Industries Inc (WOR)
Days of inventory on hand (DOH)
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 21.87 | 5.96 | 4.48 | 6.46 | 6.77 | |
| DOH | days | 16.69 | 61.20 | 81.40 | 56.53 | 53.90 |
May 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.87
= 16.69
Days of Inventory on Hand (DOH) measures the average number of days it takes for a company to sell its inventory. A lower DOH value suggests that the company is carrying less inventory relative to its sales, while a higher DOH value indicates a longer time to sell existing inventory.
Worthington Enterprises Inc.'s DOH has exhibited fluctuations over the past five years. In 2023, the company's DOH decreased to 52.18 days from 61.20 days in 2022. This reduction may indicate that the company managed its inventory more efficiently, potentially resulting in faster inventory turnover. Comparing this performance to previous years, the DOH has been somewhat volatile. In 2021, the DOH was relatively high at 81.40 days, implying a slower turnover rate and a possible excess of inventory. However, in 2020 and 2019, the DOH values were lower at 56.53 days and 53.90 days respectively, suggesting improved inventory management.
Overall, assessing Worthington Enterprises Inc.'s DOH reveals mixed performance in managing inventory levels. It is essential for the company to continuously monitor and optimize its inventory turnover to ensure efficient use of resources and minimize carrying costs.
Peer comparison
May 31, 2023