Dollar Tree Inc (DLTR)

Days of inventory on hand (DOH)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover		3.93	3.76	3.84	3.90	3.38	3.36	3.47	3.88	4.07	4.23	4.87	4.92	4.92	5.06	6.20	6.70	6.35	4.20	4.63	4.73
DOH	days	92.78	96.96	94.95	93.57	108.09	108.58	105.25	94.00	89.71	86.24	74.93	74.14	74.14	72.13	58.83	54.47	57.48	86.94	78.86	77.13

February 3, 2024 calculation

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

Dollar Tree Inc's Days of Inventory on Hand (DOH) has exhibited some fluctuations over the past several quarters. The DOH ranged between 54.47 days to 108.58 days, indicating variability in the company's inventory management efficiency.

In the most recent quarter, Dollar Tree Inc had an DOH of 92.78 days, which suggests that the company is holding inventory for approximately 92.78 days before selling it. This number was higher compared to the prior quarter's DOH of 96.96 days, indicating a potential slowdown in inventory turnover.

It is important for Dollar Tree Inc to monitor and manage its inventory levels effectively to avoid excessive carrying costs and potential obsolescence. The company should strive to optimize its inventory turnover to maintain a healthy balance between having enough stock to meet customer demand and minimizing excess holding costs.

Further analysis may be necessary to understand the reasons behind the fluctuations in DOH and to implement strategies that can improve inventory management efficiency over time.