Bath & Body Works Inc. (BBWI)
Days of inventory on hand (DOH)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.55 | 8.66 | 5.91 | 6.07 | 8.72 | |
| DOH | days | 65.78 | 42.12 | 61.81 | 60.11 | 41.85 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.55
= 65.78
The days of inventory on hand (DOH) for Bath & Body Works Inc. have fluctuated over the years based on the provided data. The DOH was 41.85 days as of January 28, 2023, increased to 60.11 days by January 31, 2023, and further rose to 61.81 days by January 31, 2024. Subsequently, there was a decrease to 42.12 days by February 3, 2024, followed by a significant increase to 65.78 days by January 31, 2025.
This fluctuation in DOH indicates variability in the company's inventory management efficiency. A lower DOH suggests that the company is selling its inventory faster, which can be beneficial in terms of reducing carrying costs and the risk of inventory obsolescence. However, a very low DOH could also indicate stockouts and potential lost sales.
Conversely, a higher DOH may imply overstocking, tying up cash flow in inventory, and the possibility of inventory becoming obsolete. It is essential for Bath & Body Works Inc. to strike a balance in managing its inventory levels effectively to optimize its working capital and profitability.
Peer comparison
Jan 31, 2025