Estee Lauder Companies Inc (EL)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Inventory turnover		7.10	6.49	5.76	5.35	5.09	4.83	4.82	4.92	5.15	5.44	5.86	5.67	5.71	4.97	4.99	4.94	5.40	6.88	6.92	6.50
DOH	days	51.40	56.26	63.35	68.16	71.74	75.51	75.69	74.14	70.85	67.13	62.31	64.41	63.95	73.39	73.18	73.94	67.64	53.04	52.73	56.16

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.10
= 51.40

Estee Lauder Companies Inc's days of inventory on hand (DOH) has shown some fluctuations over the past few years. The company has maintained an average DOH of around 65 days, indicating that on average, inventory is held for approximately 65 days before being sold.

There was a noticeable increase in DOH during the first half of 2023, reaching a peak of 75.69 days in March 2023. This suggests that Estee Lauder may have experienced challenges in managing its inventory efficiently during that period. However, the company was able to reduce DOH in the following quarters, indicating improved inventory management practices.

In more recent periods, the trend has been relatively stable, with DOH hovering around the mid-60s range. This suggests that Estee Lauder has implemented strategies to optimize inventory levels and turnover.

Overall, while there have been fluctuations in Estee Lauder's DOH over the years, the company has managed to maintain an acceptable level of inventory efficiency, ensuring a balance between stocking enough inventory to meet demand and minimizing excess carrying costs.