Chewy Inc (CHWY)
Days of inventory on hand (DOH)
Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Inventory turnover | 10.79 | 10.88 | 10.90 | 11.61 | 11.68 | 12.53 | 12.40 | 12.89 | 12.78 | 12.82 | 12.87 | 11.57 | 12.28 | 11.30 | 12.77 | 12.43 | 12.05 | 11.97 | 10.67 | 13.55 | |
DOH | days | 33.82 | 33.53 | 33.47 | 31.43 | 31.25 | 29.14 | 29.43 | 28.31 | 28.55 | 28.47 | 28.36 | 31.54 | 29.73 | 32.30 | 28.58 | 29.36 | 30.30 | 30.49 | 34.20 | 26.93 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.79
= 33.82
Days of inventory on hand (DOH) is a financial ratio that measures how many days it takes for a company to turn its inventory into sales. For Chewy Inc, the DOH has shown some fluctuations over the past few years based on the provided data.
From January 2023 to October 2023, there was a decreasing trend in DOH, indicating that Chewy was able to manage its inventory more efficiently during this period. Further, the DOH remained relatively stable around the 28 to 29-day range during the first half of 2024, suggesting a consistent performance in inventory management.
However, there was a slight increase in DOH towards the end of 2024, possibly indicating a slowdown in inventory turnover. This increase could be concerning as it may suggest that Chewy is holding onto its inventory for a longer period, which could tie up capital and lead to potential obsolescence or carrying costs.
Overall, Chewy Inc should continue to monitor its inventory turnover closely to ensure that it strikes a balance between having enough inventory to meet customer demand while also avoiding excessive holding costs.
Peer comparison
Jan 31, 2025