Walt Disney Company (DIS)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		10.16	10.53	10.67	12.21	12.85
DOH	days	35.93	34.66	34.22	29.89	28.40

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.16
= 35.93

Walt Disney Company's Days of Inventory on Hand (DOH) has shown a consistent upward trend over the past five years. In 2024, the DOH stood at 35.93 days, compared to 34.66 days in 2023 and 34.22 days in 2022. This indicates that the company is holding onto its inventory for a slightly longer period in recent years.

The increase in DOH could be a cause for concern as it suggests that Walt Disney may be facing challenges in managing its inventory efficiently. A higher DOH value may indicate excessive inventory levels or slow-moving inventory, which can tie up capital and lead to increased storage costs.

However, it's important to consider the nature of Walt Disney's business, which involves the production and distribution of entertainment products that are subject to seasonality and demand fluctuations. Therefore, the increase in DOH may also reflect the unique characteristics of the company's operations.

Overall, while a higher DOH value may raise some red flags regarding inventory management, further analysis is needed to determine the specific factors driving this trend and whether it aligns with the company's strategic objectives and industry dynamics.