Olympic Steel Inc (ZEUS)
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 | 4.84 | 4.89 | 5.01 | 5.27 | 5.40 | 4.57 | 4.53 | 4.58 | 4.06 | 4.10 | 3.80 | 4.22 | 4.57 | 4.68 | 4.32 | 4.93 | 5.14 | 5.34 | 5.44 | 5.88 | |
| DOH | days | 75.37 | 74.57 | 72.91 | 69.25 | 67.65 | 79.79 | 80.51 | 79.65 | 89.92 | 89.11 | 96.17 | 86.47 | 79.92 | 77.98 | 84.57 | 74.01 | 71.07 | 68.38 | 67.08 | 62.04 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.84
= 75.37
Days of Inventory on Hand (DOH) is a key financial ratio used to measure how efficiently a company manages its inventory.
Analyzing the data for Olympic Steel Inc. over the past eight quarters shows some fluctuations in their inventory management. In Q1 2023, the company had 75.53 days of inventory on hand, which increased to 79.97 days in Q2 2023 and further to 82.31 days in Q3 2023. However, in Q4 2023, the DOH ratio reached its highest point at 83.75 days, indicating that the company was holding inventory for a longer period.
Comparing this trend to the previous year, we see a general increase in the DOH ratio from Q1 2022 to Q4 2022, with the ratio peaking at 87.41 days in Q3 2022. The subsequent quarters in 2022 showed a slight decrease in the DOH ratio, but it remained relatively high compared to the same periods in 2023.
Overall, the trend in Olympic Steel Inc.'s DOH ratio suggests that the company may be carrying excess inventory or experiencing challenges in managing their inventory levels efficiently. This could potentially impact their working capital and overall financial performance, highlighting the importance of closely monitoring and optimizing inventory management practices.
Peer comparison
Dec 31, 2023