Woodward Inc (WWD)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.94 | 4.08 | 4.60 | 4.96 | 4.76 | |
| DOH | days | 73.90 | 89.52 | 79.37 | 73.56 | 76.69 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.94
= 73.90
To analyze Woodward Inc's days of inventory on hand (DOH) over the past five years, we can see a fluctuating trend in the number of days it takes to sell its inventory.
In 2019, the DOH was 86.04 days, which increased slightly to 86.15 days in 2020. Subsequently, there was a notable jump to 90.45 days in 2021. However, there was a decrease in 2022 to 101.06 days, before dropping further to 84.49 days in 2023.
This trend indicates that Woodward Inc has demonstrated some degree of control over its inventory management, as it managed to reduce the number of days of inventory on hand in 2023 compared to the prior year, despite the increase in 2021. However, the significant jump in 2022 could signify potential inefficiencies in inventory management during that period.
Overall, Woodward Inc's DOH trend highlights the importance of monitoring and optimizing inventory levels to enhance operational efficiency and working capital management.