Calavo Growers Inc (CVGW)

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		22.19	30.96	25.06	24.80	25.86	30.61	34.30	22.13	21.53	26.22	21.14	18.82	24.21	25.53	25.52	24.92	27.47	30.56	24.13	21.31
DOH	days	16.45	11.79	14.57	14.72	14.11	11.92	10.64	16.49	16.95	13.92	17.27	19.40	15.08	14.30	14.30	14.65	13.29	11.94	15.13	17.13

January 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 22.19
= 16.45

The Days of Inventory on Hand (DOH) ratio for Calavo Growers Inc has exhibited variability over the past several quarters. On average, the company held inventory for around 14 days during the most recent period of Jan 31, 2024. This indicates a slight increase from the previous quarter's 11.79 days, suggesting a longer period of holding inventory.

It is worth noting that the DOH ratio has fluctuated between a low of 10.64 days in Jul 31, 2022, and a high of 19.40 days in Apr 30, 2021, reflecting some level of inconsistency in managing inventory levels efficiently.

Overall, a lower DOH ratio is generally preferred as it indicates that the company is efficiently managing its inventory and converting it into sales. The recent uptick in the DOH ratio may warrant further investigation into the company's inventory management practices to ensure optimal levels of inventory turnover and cost efficiency.