Five Below Inc (FIVE)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Inventory turnover		3.94	3.38	4.69	4.63	5.22	4.36	3.18	3.15	4.41	4.74	5.26	5.16	5.06	4.67	3.05	3.04	3.71	4.39	4.54	5.34
DOH	days	92.63	107.96	77.79	78.85	69.94	83.63	114.72	115.78	82.70	77.05	69.38	70.74	72.19	78.19	119.67	119.92	98.43	83.21	80.39	68.33

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.94
= 92.63

Five Below Inc's days of inventory on hand (DOH) has shown fluctuations over the past few years. The trend indicates that as of January 31, 2022, the company held inventory for approximately 68.33 days, which increased to 80.39 days by April 30, 2022. This upward trend continued, reaching a peak of 119.92 days on October 29, 2022.

Subsequently, a slight decrease was observed, with DOH dropping to 78.19 days by January 28, 2023. The company managed to reduce its DOH further to 69.38 days by April 30, 2023, demonstrating more efficient inventory management. However, there was an uptick in DOH by October 28, 2023, and October 31, 2023, where the figures stood at 115.78 days and 114.72 days, respectively.

As of February 3, 2024, the DOH dropped to 69.94 days, implying improved inventory turnover. This trend continued with fluctuations, with DOH standing at 107.96 days on October 31, 2024, and 92.63 days by January 31, 2025. The variations in DOH suggest that Five Below Inc may be adjusting its inventory levels to align with demand fluctuations in the market, potentially impacting cash flow and operational efficiency. Monitoring and managing inventory levels effectively will be crucial for the company to optimize working capital and improve profitability.