Foot Locker Inc (FL)
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 | 3.75 | 3.72 | 4.20 | 4.21 | 5.00 | 4.33 | 3.55 | 3.50 | 3.51 | 3.66 | 2.78 | 2.85 | 3.14 | 3.04 | 4.07 | 4.04 | 3.88 | 3.01 | 3.18 | 3.94 | |
| DOH | days | 97.36 | 97.99 | 86.99 | 86.69 | 73.04 | 84.23 | 102.90 | 104.38 | 104.13 | 99.85 | 131.41 | 128.05 | 116.24 | 120.20 | 89.75 | 90.30 | 94.02 | 121.32 | 114.71 | 92.68 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.75
= 97.36
Foot Locker Inc's Days of Inventory on Hand (DOH) demonstrates the average number of days it takes for the company to sell off its inventory. A higher number of days indicates that the company might be carrying excess inventory, leading to increased storage costs and potentially obsolete stock.
Analyzing the trend in Foot Locker Inc's DOH from January 31, 2022, to January 31, 2025, reveals fluctuations in the efficiency of managing inventory. The DOH ranged from a high of 131.41 days in April 30, 2023, to a low of 73.04 days in February 3, 2024. However, it is important to note that a lower DOH is generally preferred as it signifies quicker inventory turnover and efficient management.
In recent periods, there has been a trend of decreasing DOH, indicating potential improvements in inventory management efficiency. For instance, from October 31, 2023, to January 31, 2025, the DOH decreased from 102.90 days to 97.36 days. This implies that Foot Locker Inc has been able to sell its inventory faster during these periods.
It is crucial for Foot Locker Inc to continue monitoring and optimizing its inventory management practices to maintain an optimal balance between having enough inventory to meet customer demand and minimizing holding costs. Additionally, comparing the company's DOH with industry benchmarks can provide insights into its competitiveness and operational effectiveness in the retail sector.
Peer comparison
Jan 31, 2025