Brinker International Inc (EAT)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		46.93	45.30	40.02	40.92	44.23
DOH	days	7.78	8.06	9.12	8.92	8.25

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 46.93
= 7.78

Based on the calculated Days of Inventory on Hand (DOH) for Brinker International Inc over the past five years, the company has managed its inventory efficiently. The DOH has shown a decreasing trend from 9.12 days in 2022 to 7.78 days in 2024. This indicates that Brinker International has been able to reduce the number of days it holds inventory before selling it, which can be a positive sign of effective inventory management.

A lower DOH value suggests that Brinker International is efficiently managing its inventory levels, possibly through better inventory control, demand forecasting, and supply chain management. By decreasing the number of days inventory is held, the company can reduce carrying costs, minimize the risk of inventory obsolescence, and free up working capital for other strategic initiatives.

Overall, the decreasing trend in Brinker International's DOH reflects positively on the company's operational efficiency and indicates a potential improvement in inventory turnover, which can lead to enhanced profitability and liquidity. Additionally, a lower DOH may also indicate that the company is effectively adapting to changes in consumer demand and reducing the risk of excess or obsolete inventory in its supply chain.