Worthington Steel Inc (WS)
Days of inventory on hand (DOH)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.38 | 7.17 | 8.21 | 7.22 | ||||
| DOH | days | 49.46 | 50.88 | 44.47 | 50.57 |
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 exhibited some fluctuations over the past several quarters, with values ranging from 44.47 days to 50.88 days. In the most recent quarter ending May 31, 2024, the company reported a DOH of 49.46 days, indicating that, on average, it took approximately 49.46 days for the company to sell its inventory.
The trend in DOH shows some variability, suggesting potential shifts in inventory management practices or market demand for Worthington Steel's products. A lower DOH value, such as 44.47 days in November 2023, may indicate efficient inventory turnover, possibly due to effective demand forecasting or streamlined production processes. On the other hand, a higher DOH value, like 50.88 days in February 2024, could imply slower inventory turnover, potentially leading to higher carrying costs and tying up working capital.
Monitoring and analyzing the DOH metric can provide valuable insights into the company's inventory management efficiency and effectiveness. It is essential for Worthington Steel Inc to strike a balance between optimizing inventory levels to meet customer demands and minimizing carrying costs to enhance overall profitability and liquidity.
Peer comparison
May 31, 2024