Walt Disney Company (DIS)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		10.53	10.67	12.21	12.85	8.52
DOH	days	34.66	34.22	29.89	28.40	42.85

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.53
= 34.66

Walt Disney Co's days of inventory on hand (DOH) indicates the average number of days the company holds its inventory before it is sold. Over the past five years, the DOH has shown some fluctuation. The DOH increased from 10.76 days in 2021 to 11.69 days in 2022, indicating a longer period of inventory holding. However, in 2023, there was a further increase to 12.10 days. This trend suggests that in the recent years, the company is taking longer to sell its inventory.

A higher DOH could imply a potential risk of obsolete or slow-moving inventory, tying up resources and affecting cash flow. Therefore, it is essential for Walt Disney Co to monitor and optimize its inventory management to minimize the DOH and ensure efficient use of resources.