Aramark Holdings (ARMK)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		45.03	27.71	28.02	29.17	37.29
DOH	days	8.11	13.17	13.03	12.51	9.79

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 45.03
= 8.11

Aramark Holdings' days of inventory on hand (DOH) has shown a downward trend over the past five years. The company managed to reduce its DOH from 9.79 days in 2019 to 8.11 days in 2023. This indicates that Aramark has been more efficient in managing its inventory levels, as it is able to sell its inventory faster.

A lower DOH implies that the company is able to turn over its inventory quickly, reducing the risk of obsolete or unsold inventory. This could also suggest improved inventory management practices, such as better forecasting and just-in-time inventory systems.

Overall, the decreasing trend in DOH for Aramark Holdings reflects positively on the company's operational efficiency and potentially improved financial performance.