Burlington Stores Inc (BURL)
Days of inventory on hand (DOH)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.67 | 8.17 | 6.83 | 8.14 | 4.82 | |
| DOH | days | 47.62 | 44.70 | 53.45 | 44.82 | 75.79 |
February 1, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.67
= 47.62
Based on the provided data for Burlington Stores Inc, the days of inventory on hand (DOH) has fluctuated over the past five years. In January 2021, the company had an average of 75.79 days of inventory on hand, indicating a relatively higher level of inventory relative to its sales. This may suggest potential inefficiencies in managing inventory levels.
Over the following years, there was a noticeable decrease in the DOH metric. By January 2022, the DOH had dropped to 44.82 days, signifying an improvement in inventory management efficiency. However, there was a slight increase in the DOH to 53.45 days by January 2023, which could indicate a slowdown in inventory turnover or an increase in inventory levels relative to sales.
Subsequently, in February 2024 and February 2025, the DOH continued to decline to 44.70 days and 47.62 days, respectively. This downward trend suggests that Burlington Stores Inc has been more effective in managing its inventory levels and optimizing its inventory turnover in recent years.
Overall, the decreasing trend in DOH from 2021 to 2025 indicates that Burlington Stores Inc has been making efforts to enhance its inventory management practices and optimize its working capital utilization. However, it is important for the company to maintain a balance between managing inventory efficiently and meeting customer demand effectively to ensure sustainable growth and profitability in the future.
Peer comparison
Feb 1, 2025