Worthington Steel Inc (WS)
Days of inventory on hand (DOH)
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Inventory turnover | 7.38 | 7.89 | 6.45 | 3.97 | |
| DOH | days | 49.46 | 46.28 | 56.59 | 92.04 |
May 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.38
= 49.46
The days of inventory on hand (DOH) for Worthington Steel Inc have fluctuated over the past four years, ranging from 92.04 days as of August 31, 2021, to 46.28 days as of August 31, 2023. The decrease in DOH from 92.04 days in 2021 to 46.28 days in 2023 indicates an improvement in the company's inventory management efficiency, as it took fewer days to sell or use up the inventory.
However, there was a slight increase in DOH to 49.46 days as of May 31, 2024, compared to the previous year. This could suggest a potential buildup in inventory levels relative to sales, which might impact liquidity and working capital management.
Overall, while the decreasing trend in DOH from 2021 to 2023 was positive, the slight increase in 2024 requires monitoring to ensure efficient inventory management practices are maintained to support the company's operations and financial health.
Peer comparison
May 31, 2024