The Clorox Company (CLX)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.35 | 6.44 | 6.04 | 5.51 | 8.06 | |
| DOH | days | 57.48 | 56.69 | 60.41 | 66.27 | 45.30 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.35
= 57.48
The days of inventory on hand (DOH) for The Clorox Company fluctuated over the past five years. In particular, the company held inventory for an average of 44.03 days at the end of June 2024, compared to 40.85 days in 2023 and 49.60 days in 2022. This indicates that the company slightly increased its inventory holding period in 2024 compared to the previous year, which could suggest a buildup of inventory levels.
Furthermore, the DOH metric was relatively consistent in 2021 and 2022, indicating stable inventory management practices during those years. However, there was a noticeable decrease in DOH in 2020, which may suggest a more efficient turnover of inventory during that period.
Overall, fluctuations in DOH can be indicative of changes in inventory management efficiency and supply chain dynamics within The Clorox Company. Keeping a close eye on this ratio can help assess the company's ability to manage its inventory levels effectively and optimize its working capital utilization.