Worthington Industries Inc (WOR)
Days of inventory on hand (DOH)
| Nov 30, 2024 | Aug 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.87 | 4.89 | 8.90 | 3.00 | 3.81 | 18.31 | 6.54 | 7.48 | 6.70 | 5.96 | 4.52 | 3.91 | 3.82 | 4.48 | 5.57 | 7.74 | 7.72 | 6.46 | 7.71 | 8.01 | |
| DOH | days | 75.00 | 74.66 | 41.03 | 121.68 | 95.71 | 19.94 | 55.84 | 48.80 | 54.44 | 61.20 | 80.79 | 93.23 | 95.61 | 81.40 | 65.52 | 47.18 | 47.27 | 56.53 | 47.32 | 45.56 |
November 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.87
= 75.00
Based on the provided data, Worthington Industries Inc's days of inventory on hand (DOH) have fluctuated over the period. The company's DOH stood at around 45 to 47 days from November 2019 to August 2020. There was an increase in DOH to over 65 days by February 2021, indicating a potential buildup of inventory.
The trend continued with a significant increase in DOH to over 95 days by August 2021 and further to around 121 days by November 2023, suggesting potential issues with inventory management or slowing sales.
Subsequently, there was a notable decrease in DOH to around 19 days by May 2023, which could indicate a more efficient inventory management process or possibly a decrease in inventory levels due to sales improvement.
Overall, it is essential for Worthington Industries Inc to regularly monitor and manage its inventory levels to ensure optimal working capital utilization and operational efficiency. A decreasing trend in DOH generally reflects better inventory management practices, while an increasing trend may indicate inefficiencies or challenges in sales forecasting and inventory control.
Peer comparison
Nov 30, 2024