AutoZone Inc (AZO)

Days of inventory on hand (DOH)

Aug 31, 2024 Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020
Inventory turnover 1.41 1.45 1.38 1.49 1.31
DOH days 259.03 250.86 264.52 245.02 278.57

August 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.41
= 259.03

AutoZone Inc's Days of Inventory on Hand (DOH) has shown fluctuating trends over the past five years. As of August 31, 2024, the company had 259.03 days' worth of inventory on hand, which was higher compared to the previous year at 250.86 days. In the fiscal year 2022, the DOH was at its peak at 264.52 days, while in the fiscal year 2021, it reached a low of 245.02 days. Additionally, in the fiscal year 2020, the DOH was relatively high at 278.57 days.

The variations in the DOH indicate changes in AutoZone's inventory management practices and efficiency in managing its inventory levels. A higher DOH may suggest slower inventory turnover and potentially excess inventory on hand, which could tie up working capital and increase holding costs. Conversely, a lower DOH may indicate faster inventory turnover, which could result in reduced holding costs but potentially lead to stockouts if not managed effectively.

It is important for AutoZone to continuously monitor its DOH to optimize inventory levels, improve cash flow, and enhance operational efficiency. Further analysis and comparison with industry benchmarks would provide additional insights into the company's inventory management performance.


Peer comparison

Aug 31, 2024


See also:

AutoZone Inc Average Inventory Processing Period