Olympic Steel Inc (ZEUS)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.85 | 5.39 | 4.06 | 4.57 | 5.14 | |
| DOH | days | 75.25 | 67.70 | 89.92 | 79.92 | 71.07 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.85
= 75.25
The Days of Inventory on Hand (DOH) for Olympic Steel Inc. has shown fluctuations over the past five years. As of December 31, 2023, the company held inventory for approximately 83.75 days on average, which represents an increase compared to the previous year when it was 73.38 days. This rise in DOH indicates that the company is holding onto its inventory for a longer period, potentially tying up more capital and carrying higher holding costs.
Looking back over the last five years, the DOH has ranged from a low of 73.38 days in 2022 to a high of 98.24 days in 2021. The fluctuation in DOH suggests potential changes in inventory management practices or market demand dynamics impacting inventory levels.
It is essential for Olympic Steel Inc. to closely monitor and manage its inventory levels efficiently to avoid excessive holding costs, obsolescence, or stockouts. A higher DOH may indicate inefficiencies in inventory management, while a lower DOH could signal effective inventory turnover. Analyzing factors contributing to inventory levels and implementing strategies to optimize inventory turnover could help improve overall operational efficiency and financial performance for the company.
Peer comparison
Dec 31, 2023