Dollar Tree Inc (DLTR)

Days of inventory on hand (DOH)

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Inventory turnover		4.22	3.93	4.16	3.56	3.38
DOH	days	86.43	92.78	87.73	102.55	108.09

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.22
= 86.43

Based on the data provided, Dollar Tree Inc's days of inventory on hand (DOH) has shown a decreasing trend over the years, indicating an improvement in inventory management efficiency.

- As of January 28, 2023, the DOH was 108.09 days, but by January 31, 2025, it decreased to 86.43 days. This suggests that the company has been able to turn its inventory into sales more quickly over time.

- The lower number of days of inventory on hand in 2025 compared to 2023 indicates that Dollar Tree Inc has been able to control its inventory levels more effectively, which can lead to cost savings and improved cash flow.

- However, it is worth noting that there was a slight increase in DOH from January 31, 2024, to February 3, 2024, which may indicate a temporary slowdown in inventory turnover during that period.

Overall, the decreasing trend in days of inventory on hand reflects positively on Dollar Tree Inc's ability to manage its inventory efficiently and respond effectively to changes in demand.