FedEx Corporation (FDX)
Days of inventory on hand (DOH)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 63.61 | 66.31 | 65.95 | 60.15 | 56.97 | |
| DOH | days | 5.74 | 5.50 | 5.53 | 6.07 | 6.41 |
May 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 63.61
= 5.74
The days of inventory on hand (DOH) for FedEx Corporation have shown a slight fluctuation over the past five years. The trend indicates that the company has been consistently managing its inventory efficiently, with lower DOH numbers indicating quicker turnover of inventory.
In the most recent year, as of May 31, 2024, FedEx Corporation had a DOH of 5.74 days, which was slightly higher compared to the previous year's DOH of 5.50 days. This suggests that the company may have had a slightly slower inventory turnover in the latest period.
Looking back over the five-year period, there has been a general downward trend in DOH, with improvements in inventory management efficiency. This indicates that FedEx has been successful in optimizing its inventory levels and minimizing excess inventory holding costs.
Overall, the DOH ratio for FedEx Corporation reflects a relatively efficient inventory management strategy, with a focus on maintaining an optimal balance between inventory levels and customer demand.