Worthington Industries Inc (WOR)
Days of inventory on hand (DOH)
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 16.62 | 5.57 | 4.93 | 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 | 7.52 | 6.77 | |
| DOH | days | 21.96 | 65.53 | 73.97 | 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 | 48.56 | 53.90 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.62
= 21.96
Days of inventory on hand (DOH) is a financial ratio that measures the number of days a company takes to sell its inventory on average. A lower DOH indicates that the company is selling its inventory more quickly, which is generally favorable as it reduces the risk of obsolete inventory and improves cash flow.
Analyzing Worthington Industries Inc's DOH over the past few periods, we observe fluctuations in the ratio. As of Feb 29, 2024, the DOH is 21.96 days, indicating that Worthington Industries is able to sell its inventory relatively quickly compared to the previous periods.
The DOH was significantly higher in the past, reaching peaks of 93.23 days in Nov 30, 2021, and 95.61 days in Aug 31, 2021. These extended inventory turnover periods may suggest inefficiencies in inventory management or challenges in selling the company's products.
From a trend perspective, there seems to be a recent improvement in inventory management efficiency, as the DOH has generally decreased over the most recent periods. This could be a positive sign of improved operational performance, better demand forecasting, or more effective inventory control measures implemented by Worthington Industries.
Overall, while the current DOH of 21.96 days is a positive indicator of inventory turnover efficiency, it would be beneficial for Worthington Industries to continue monitoring and managing its inventory levels effectively to maintain optimal working capital utilization and profitability.
Peer comparison
Feb 29, 2024