The Clorox Company (CLX)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.27 | 8.09 | 9.16 | 8.36 | 8.91 | 8.29 | 7.54 | 7.39 | 7.36 | 6.57 | 6.68 | 6.83 | 6.95 | 7.48 | 7.85 | 8.48 | 9.58 | 9.16 | 7.90 | 7.68 | |
| DOH | days | 44.14 | 45.13 | 39.83 | 43.65 | 40.95 | 44.02 | 48.40 | 49.38 | 49.60 | 55.58 | 54.67 | 53.45 | 52.55 | 48.83 | 46.47 | 43.04 | 38.10 | 39.83 | 46.20 | 47.52 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.27
= 44.14
The Days of Inventory on Hand (DOH) for The Clorox Company has exhibited some fluctuations over the past several quarters. The DOH metric measures how many days, on average, a company holds its inventory before selling it. A lower DOH implies that the company is selling its inventory more quickly, while a higher DOH suggests slower inventory turnover.
Analyzing the data provided, we observe that the DOH for The Clorox Company has ranged from a low of 38.10 days on September 30, 2020, to a high of 55.58 days on March 31, 2022. Over the most recent quarter ending June 30, 2024, the DOH was recorded at 44.14 days.
The increasing trend in DOH from December 2021 through March 2022 could indicate potential issues with inventory management, such as overstocking or sluggish sales. Conversely, the decreasing trend from June 2022 through December 2023 suggests improvements in inventory turnover efficiency.
It is essential for The Clorox Company to monitor and manage its inventory levels effectively to strike a balance between maintaining sufficient inventory to meet customer demand and minimizing carrying costs associated with excess inventory. Additionally, comparing the company's DOH with industry benchmarks and historical performance can provide valuable insights into its operational efficiency and financial health.