The Cooper Companies Inc. (COO)
Days of inventory on hand (DOH)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.99 | 3.97 | 3.01 | 3.02 | 3.12 | 3.19 | 4.69 | 4.76 | 4.66 | 4.50 | 4.36 | 4.14 | 4.08 | 4.05 | 3.35 | 3.56 | 3.37 | 2.90 | 2.33 | 1.80 | |
| DOH | days | 91.42 | 91.87 | 121.31 | 120.77 | 117.04 | 114.26 | 77.88 | 76.69 | 78.41 | 81.17 | 83.75 | 88.20 | 89.54 | 90.02 | 109.03 | 102.53 | 108.45 | 125.97 | 156.84 | 203.14 |
January 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.99
= 91.42
To analyze Cooper Companies, Inc.'s days of inventory on hand (DOH) trend, we observe that the DOH has been fluctuating over the past eight quarters. The trend shows that the company has had higher DOH in more recent quarters compared to the earlier quarters. This may indicate an increase in the amount of time it takes for the company to sell its inventory or potential inefficiencies in inventory management.
Specifically, the DOH has increased from 203.56 days in Q3 2022 to 219.48 days in Q1 2024, which represents a significant rise in the time it takes for the company to turn its inventory into sales. This elongation of the DOH period suggests that there may be excess inventory levels or challenges in optimizing inventory turnover efficiency during this period.
Moreover, the increase in DOH over the quarters could raise concerns about the company's liquidity, as tied-up inventory can strain cash flow and increase holding costs. It is important for Cooper Companies, Inc. to closely monitor and potentially address the factors leading to the higher DOH to enhance operational efficiency and maintain healthy inventory management practices.
Peer comparison
Jan 31, 2024