Woodward Inc (WWD)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 3.57 | 4.62 | 4.35 | |
| DOH | days | 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 | 102.14 | 78.98 | 84.00 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.75
= 76.90
To analyze Woodward Inc's Days of Inventory on Hand (DOH), we look at the trend over multiple quarters to identify any patterns or fluctuations.
From the given data, we observe that DOH has varied over the past eight quarters. The DOH figures range from as low as 84.49 days in Q4 2023 to as high as 108.47 days in Q1 2023. This indicates that Woodward Inc's inventory management efficiency has fluctuated during this period.
On average, Woodward Inc has maintained a DOH of around 100 days throughout the last two years. This suggests that the company, on average, holds inventory for approximately 100 days before selling it.
The decrease in DOH from Q2 2023 to Q4 2023 may imply improved inventory turnover efficiency or more effective management of inventory levels during that period. However, the subsequent increase in DOH in Q1 2024 raises concerns about potential inventory management challenges or changes in the production or sales environment.
Overall, Woodward Inc's DOH trend indicates the need for continued monitoring and evaluation of their inventory management practices to ensure optimal efficiency and cost control in their operations.