AutoZone Inc (AZO)

Days of inventory on hand (DOH)

		Feb 10, 2024	Nov 18, 2023	Aug 26, 2023	May 6, 2023	Feb 11, 2023	Nov 19, 2022	Aug 27, 2022	May 7, 2022	Feb 12, 2022	Nov 20, 2021	Aug 28, 2021	May 8, 2021	Feb 13, 2021	Nov 21, 2020	Aug 29, 2020	May 9, 2020	Nov 23, 2019	Aug 31, 2019	May 4, 2019	Feb 9, 2019
Inventory turnover		1.41	1.45	1.45	—	—	—	1.38	—	—	1.51	1.49	—	—	1.34	1.47	—	1.25	1.27	—	—
DOH	days	259.69	251.74	250.86	—	—	—	264.52	—	—	242.50	245.02	—	—	272.82	248.45	—	292.65	286.70	—	—

February 10, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.41
= 259.69

The days of inventory on hand (DOH) for AutoZone Inc over the past few years have shown some fluctuation. The DOH ranged from as low as 242.50 days to as high as 292.65 days during the periods available for analysis. This indicates that AutoZone Inc has at times held inventory for a relatively extended period before selling it.

Specifically, over the most recent period analyzed, the DOH was 259.69 days, showing that the company held inventory for an average of almost 260 days before it was liquidated. In comparison, the highest DOH recorded was 292.65 days, indicating a higher inventory holding period.

It is important to note that a higher DOH could be indicative of slow-moving inventory or inefficiencies in inventory management, leading to potentially higher carrying costs. On the other hand, a lower DOH implies a quicker turnover of inventory, which can be a positive sign of effective inventory management.

Overall, AutoZone Inc's DOH provides insights into its inventory management practices and efficiency in converting inventory into sales, which are crucial factors in assessing the company's operational performance and financial health.