Core & Main Inc (CNM)
Days of inventory on hand (DOH)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Inventory turnover | 7.78 | 5.61 | 5.35 | |
| DOH | days | 46.90 | 65.04 | 68.23 |
January 28, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.78
= 46.90
The days of inventory on hand (DOH) for Core & Main Inc have shown a decreasing trend over the past three years. In January 2022, the DOH stood at 68.23 days, which decreased to 65.04 days in January 2023, and further declined to 46.90 days in January 2024. This downward trend indicates that the company is managing its inventory more efficiently, taking fewer days to sell its inventory or turning its inventory over more quickly.
A decreasing DOH is generally a positive sign, as it suggests that the company is able to minimize excess inventory, reduce carrying costs, and potentially improve cash flow by converting inventory into sales more rapidly. However, it is essential for the company to strike a balance to ensure it does not face stockouts or shortages that could impact customer satisfaction and sales. Overall, the decreasing trend in Core & Main Inc's DOH indicates improved inventory management efficiency over the past three years.