Dick’s Sporting Goods Inc (DKS)
Days of inventory on hand (DOH)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.57 | 4.25 | 2.96 | 2.86 | 3.98 | |
| DOH | days | 141.89 | 85.95 | 123.22 | 127.82 | 91.68 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.57
= 141.89
To analyze Dick’s Sporting Goods Inc's days of inventory on hand (DOH) over the five specified dates, we observe the following trend:
1. As of January 28, 2023, the DOH was recorded at 91.68 days.
2. By January 31, 2023, the DOH had increased significantly to 127.82 days.
3. Over the next year, by January 31, 2024, the DOH slightly decreased to 123.22 days.
4. Subsequently, by February 3, 2024, the DOH saw a notable improvement, dropping to 85.95 days.
5. The most recent data point, as of January 31, 2025, depicts a considerable rise in DOH to 141.89 days.
The fluctuation in DOH suggests varying efficiency in managing inventory levels during the periods under review. A higher DOH indicates that inventory is moving at a slower pace, potentially leading to higher carrying costs and lower liquidity. Conversely, a lower DOH may signify better inventory turnover and cash flow optimization.
It is recommended for Dick’s Sporting Goods Inc to further analyze the reasons behind the fluctuations in DOH and implement strategies to maintain optimal inventory levels, ensuring profitability and operational efficiency.
Peer comparison
Jan 31, 2025