Best Buy Co. Inc (BBY)
Days of inventory on hand (DOH)
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.32 | 4.20 | 5.79 | 6.38 | 6.83 | 4.50 | 6.15 | 6.78 | 7.08 | 5.16 | 6.37 | 6.31 | 6.73 | 4.73 | 6.30 | 6.82 | 6.54 | 4.73 | 8.12 | 8.32 | |
| DOH | days | 57.74 | 86.98 | 63.01 | 57.25 | 53.46 | 81.18 | 59.39 | 53.80 | 51.56 | 70.73 | 57.30 | 57.84 | 54.27 | 77.15 | 57.96 | 53.52 | 55.83 | 77.22 | 44.93 | 43.88 |
February 1, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.32
= 57.74
The days of inventory on hand (DOH) ratio for Best Buy Co. Inc has shown some fluctuations over the past few years. The DOH measures how many days it takes for a company to sell its entire inventory. From the data provided:
- The DOH ranged from approximately 43.88 days to 77.22 days between May 2, 2020, and October 31, 2020, possibly indicating inventory management challenges or seasonal fluctuations.
- Subsequently, the ratio fluctuated between 51.56 days to 81.18 days up to October 28, 2023. This pattern suggests some variability in the company's inventory turnover efficiency during this period.
- In the later period, the DOH seemed to stabilize somewhat, with values ranging from around 53.46 days to 63.01 days between February 3, 2024, and August 3, 2024.
Overall, it appears that Best Buy Co. Inc has experienced some variability in its DOH ratio, potentially reflecting changes in sales trends, inventory management practices, or market conditions. A lower DOH is generally preferred as it indicates a faster inventory turnover and efficient management of stock levels. Maintaining a balance to avoid stockouts while minimizing carrying costs is essential for long-term profitability. Investors and analysts may want to monitor Best Buy's inventory management strategies closely to assess the company's operational efficiency and financial health.
See also:
Best Buy Co. Inc Average Inventory Processing Period (Quarterly Data)