Dollar Tree Inc (DLTR)

Days of inventory on hand (DOH)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Inventory turnover		3.93	3.38	4.07	4.92	4.70
DOH	days	92.78	108.09	89.71	74.14	77.58

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.93
= 92.78

The days of inventory on hand (DOH) for Dollar Tree Inc have fluctuated over the past five years. In the most recent fiscal year ending on February 3, 2024, the company held inventory for approximately 92.78 days on average, which indicates a slight decrease compared to the prior fiscal year.

Looking back, the DOH increased to 108.09 days on January 28, 2023, before decreasing to 89.71 days on January 29, 2022. This decrease in 2022 suggests improved inventory management efficiency. In the fiscal year ending on January 30, 2021, the DOH was 74.14 days, showing a significant decrease compared to the previous year, indicating the company was able to move inventory faster.

In the fiscal year ending on February 1, 2020, the DOH was 77.58 days, reflecting a slight increase compared to the prior fiscal year. Overall, the trend in DOH for Dollar Tree Inc shows variability, with some years indicating more efficient inventory management and others showing a higher number of days of inventory on hand. Monitoring this ratio is crucial to ensure effective inventory management practices and to optimize working capital.