American Eagle Outfitters Inc (AEO)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Inventory turnover		5.17	4.96	6.56	6.34	7.50	6.00	5.08	4.96	5.80	6.18	6.80	6.95	7.59	7.40	5.12	5.00	5.55	6.51	5.76	7.92
DOH	days	70.58	73.53	55.66	57.59	48.69	60.80	71.90	73.59	62.91	59.06	53.64	52.49	48.09	49.34	71.27	72.95	65.71	56.08	63.38	46.08

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.17
= 70.58

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company takes to sell its inventory. It is calculated by dividing the average inventory over a specific period by the cost of goods sold and then multiplying by the number of days in the period.

For American Eagle Outfitters Inc, the trend in DOH over the past few years shows fluctuations. In general, the DOH has ranged between the mid-40s to mid-70s days. Higher DOH values indicate that the company is taking longer to sell its inventory, which may suggest excess or slow-moving inventory.

Analyzing the data provided, we see that American Eagle's DOH has shown a mix of increases and decreases over the periods reported. For example, there were notable increases in DOH from October 31, 2022, to January 31, 2023, and from July 29, 2023, to October 28, 2023. On the other hand, there were decreases in DOH from January 28, 2023, to April 29, 2023, and from January 31, 2024, to February 3, 2024.

Overall, a high or increasing DOH may indicate inefficiencies in inventory management, leading to increased carrying costs and potentially obsolete inventory. On the contrary, a low or decreasing DOH may suggest more efficient inventory turnover, allowing the company to better manage its working capital and improve profitability.