Dell Technologies Inc (DELL)

Days of inventory on hand (DOH)

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Inventory turnover		18.65	16.67	13.45	19.55	19.56
DOH	days	19.57	21.90	27.15	18.67	18.66

February 2, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.65
= 19.57

Based on the provided data, Dell Technologies Inc's days of inventory on hand (DOH) have varied over the last five years, ranging from a low of 18.66 days as of January 31, 2020, to a high of 27.15 days as of January 28, 2022.

A lower DOH indicates that the company is able to sell its inventory more quickly, which can be seen in 2021 and 2020 with 18.67 and 18.66 days, respectively. It suggests efficient inventory management and better liquidity as inventory isn't tied up for extended periods.

Conversely, a higher DOH, such as in 2022, indicates that Dell is holding onto its inventory for a longer period before selling it, which may be due to reasons like declining demand or overestimation of sales projections. This can lead to increased carrying costs and the risk of inventory obsolescence.

Overall, it's crucial for Dell to maintain a balance in managing its inventory levels to ensure optimal liquidity, minimize holding costs, and respond effectively to market demand fluctuations. Further analysis and comparison with industry benchmarks could provide more insights into Dell's inventory management efficiency.