Five Below Inc (FIVE)

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		5.35	4.02	5.47	5.40	5.30	3.86	4.67	5.17	5.58	4.62	6.57	6.47	6.58	3.96	5.49	4.36	5.14	3.33	4.94	4.65
DOH	days	68.23	90.75	66.72	67.57	68.92	94.50	78.09	70.56	65.39	79.09	55.54	56.38	55.46	92.26	66.48	83.69	71.00	109.68	73.83	78.53

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.35
= 68.23

Days of Inventory on Hand (DOH) is a critical efficiency ratio that measures how many days, on average, a company holds onto its inventory before selling it. A lower DOH indicates more efficient inventory management, while a higher DOH suggests slower inventory turnover.

Analyzing the trend in Five Below Inc's DOH over the past several quarters reveals some fluctuations. The DOH has ranged from a low of 55.46 days to a high of 109.68 days. During the most recent quarter, ending on February 3, 2024, the company had a DOH of 68.23 days, reflecting an improvement compared to the previous quarter's 90.75 days.

Overall, the company has displayed some variability in managing its inventory levels efficiently. It is essential for Five Below Inc to monitor its inventory levels closely to ensure optimal balance between having enough inventory to meet customer demand and avoiding overstock situations that tie up capital.

Additionally, comparing Five Below Inc's DOH to industry benchmarks and historical data can provide further insights into the effectiveness of the company's inventory management strategies and help identify areas for improvement.