Chewy Inc (CHWY)

Days of inventory on hand (DOH)

Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Inventory turnover 14.50 13.86 14.89 13.10 14.70
DOH days 25.16 26.33 24.52 27.87 24.83

January 28, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.50
= 25.16

Days of Inventory on Hand (DOH) is a key financial ratio that indicates how efficiently a company manages its inventory. It calculates the number of days it takes for a company to sell its average inventory. A lower number of days indicates that the company is able to turn its inventory into sales quickly, which is generally favorable.

Analyzing Chewy Inc's DOH over the past five years, we can observe a fluctuating trend. In January 2020, the company had a DOH of 24.83 days, which decreased slightly to 24.52 days in January 2022, indicating an improvement in inventory turnover efficiency. However, in January 2021, the DOH increased to 27.87 days, suggesting a slower turnover of inventory compared to the previous year.

In the most recent data as of January 2024, Chewy Inc's DOH stands at 25.16 days, showing a slight improvement from the previous year. This indicates that the company is managing its inventory more efficiently and is able to convert its inventory into sales at a slightly faster pace.

Overall, although there have been fluctuations in Chewy Inc's DOH over the past five years, the company appears to have made improvements in inventory management by reducing the number of days it takes to sell its inventory. Maintaining a healthy balance between inventory levels and sales is essential for profitability and cash flow optimization.