Best Buy Co. Inc (BBY)
Days of inventory on hand (DOH)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.83 | 7.08 | 6.73 | 6.54 | 6.49 | |
| DOH | days | 53.46 | 51.56 | 54.27 | 55.83 | 56.22 |
February 3, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.83
= 53.46
Days of Inventory on Hand (DOH) is a financial ratio used to measure how efficiently a company manages its inventory by indicating the number of days it takes to turn its inventory into sales. A lower DOH indicates that a company is selling its inventory more quickly.
Over the past five years, Best Buy Co. Inc's DOH has ranged from 51.56 days to 56.22 days. The trend shows slight fluctuations in the ratio, with the lowest DOH of 51.56 days recorded in Jan 28, 2023, and the highest DOH of 56.22 days recorded in Feb 1, 2020.
The DOH of Best Buy Co. Inc has been relatively consistent over the years, hovering around the mid-50s range. This indicates that the company has been managing its inventory effectively, neither letting it sit idle for extended periods nor running out of stock frequently.
Overall, the stable DOH of Best Buy Co. Inc suggests that the company has a good handle on its inventory management processes, maintaining an optimal level of inventory to support sales without tying up excessive capital in unsold goods.