Woodward Inc (WWD)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.59 | 4.43 | 4.64 | 4.75 | 4.94 | 4.61 | 4.08 | 3.78 | 4.08 | 4.02 | 4.07 | 4.33 | 4.60 | 4.45 | 4.50 | 4.48 | 4.96 | 3.41 | 3.52 | 3.70 | |
| DOH | days | 79.60 | 82.43 | 78.64 | 76.90 | 73.94 | 79.11 | 89.36 | 96.47 | 89.52 | 90.72 | 89.78 | 84.39 | 79.37 | 82.05 | 81.05 | 81.43 | 73.56 | 107.09 | 103.66 | 98.58 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.59
= 79.60
Days of Inventory on Hand (DOH) measures how many days, on average, a company holds its inventory before selling it. A lower DOH indicates efficient inventory management, while a higher DOH may suggest possible overstocking or slow-moving inventory.
In the case of Woodward Inc, the trend in DOH over the past several quarters shows some volatility but generally hovers around 80-90 days. There was a significant increase from the low 70s in late 2019 to over 100 days in late 2020, indicating a potential issue with inventory management at that time.
The decreasing trend from late 2020 through the first half of 2023 suggests improvements in inventory management efficiency. However, the DOH increased slightly in the most recent quarters, but it still remains below the levels seen in 2020.
Overall, Woodward Inc's DOH indicates that the company may be carrying inventory for an average of around 80-90 days before selling it, which is relatively typical for its industry. It is important for the company to continue monitoring and optimizing its inventory levels to ensure a balance between meeting customer demand and minimizing carrying costs.