Buckle Inc (BKE)

Days of inventory on hand (DOH)

		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	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover		7.84	6.54	7.42	7.33	8.13	6.54	7.63	8.02	9.39	9.17	9.25	9.27	7.26	5.98	6.04	5.90	6.34	5.55	5.96	6.34
DOH	days	46.56	55.81	49.20	49.77	44.91	55.80	47.82	45.51	38.85	39.82	39.44	39.38	50.31	61.02	60.39	61.87	57.57	65.76	61.28	57.60

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.84
= 46.56

The Days of Inventory on Hand (DOH) ratio for Buckle Inc has fluctuated over the past several quarters. The DOH ratio indicates the number of days it takes for the company to sell its inventory.

From Nov 2019 to Feb 2020, the ratio was relatively high, ranging from 57.57 days to 61.87 days, suggesting that inventory turnover was slower during this period. However, from May 2020 to Jan 2022, the ratio decreased consistently, indicating improvements in inventory management efficiency as the company was able to sell its inventory faster.

In Jan 2022, the DOH ratio hit its lowest point at 38.85 days, which indicates the company was effectively managing its inventory levels. However, from then on, the ratio started to increase again, reaching 55.81 days by Oct 2023.

The increase in the DOH ratio from Jan 2022 to Oct 2023 may suggest potential issues such as overstocking or slowing sales, which could impact the company's profitability and working capital. It is important for Buckle Inc to closely monitor its inventory levels and strive to achieve a balance between maintaining adequate inventory without tying up excessive capital in slow-moving goods.