Costco Wholesale Corp (COST)

Days of inventory on hand (DOH)

		Sep 1, 2024	May 12, 2024	Feb 18, 2024	Nov 26, 2023	Sep 3, 2023	May 7, 2023	Feb 12, 2023	Nov 20, 2022	Aug 28, 2022	May 8, 2022	Feb 13, 2022	Nov 21, 2021	Aug 29, 2021	May 9, 2021	Feb 14, 2021	Nov 22, 2020	Aug 30, 2020	May 10, 2020	Feb 16, 2020	Nov 24, 2019
Inventory turnover		13.15	14.05	14.10	13.21	14.10	13.98	14.10	12.03	12.25	8.50	8.65	8.02	9.07	12.90	12.46	11.22	13.18	13.83	12.42	10.19
DOH	days	27.75	25.98	25.88	27.63	25.89	26.12	25.89	30.34	29.79	42.95	42.20	45.50	40.25	28.29	29.30	32.54	27.70	26.40	29.39	35.81

September 1, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.15
= 27.75

The Days of Inventory on Hand (DOH) for Costco Wholesale Corp has shown fluctuation over the past few periods. The DOH metric indicates the number of days it takes for a company to turn its inventory into sales.

In the most recent period, as of September 1, 2024, Costco had 27.75 days of inventory on hand. This suggests that, on average, the company typically holds enough inventory to cover 27.75 days of sales.

Looking at the trend over the past few quarters, there have been fluctuations in the DOH figures. For instance, there was a slight increase in inventory holding period between the previous two quarters (May 12, 2024: 25.98 days and February 18, 2024: 25.88 days) compared to the quarter before (November 26, 2023: 27.63 days).

Additionally, comparing the most recent DOH with historical data, we can see improvements in inventory management efficiency as the metric has decreased relative to the higher levels seen in the past. For example, there were notably higher levels of DOH in the earlier periods of August 29, 2022 (29.79 days), May 8, 2022 (42.95 days), and February 13, 2022 (42.20 days), indicating a more efficient inventory turnover in recent periods.

It is important for investors and analysts to monitor trends in the DOH metric to assess the company's inventory management practices, efficiency, and potential impact on liquidity and profitability. The fluctuation in DOH for Costco Wholesale Corp indicates the need for a closer examination of factors influencing inventory levels and sales performance.