The Gap, Inc. (GAP)
Days of inventory on hand (DOH)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.57 | 4.29 | 3.32 | 3.71 | 4.75 | |
| DOH | days | 79.90 | 85.01 | 109.79 | 98.36 | 76.77 |
February 3, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.57
= 79.90
The days of inventory on hand (DOH) for The Gap, Inc. have shown fluctuations over the years as follows:
- Feb 3, 2024: 79.90 days
- Jan 28, 2023: 85.01 days
- Jan 29, 2022: 109.79 days
- Jan 30, 2021: 98.36 days
- Feb 1, 2020: 76.77 days
The DOH metric indicates the average number of days a company holds onto its inventory before selling it. A lower DOH generally implies a faster inventory turnover and better efficiency in managing inventory levels. Conversely, a higher DOH may indicate slow inventory turnover, potentially leading to higher carrying costs and risks of obsolescence.
The Gap, Inc. has experienced fluctuations in its DOH over the years, with significant changes in inventory turnover efficiency. For instance, in 2020 and 2024, the company had relatively lower DOH figures, suggesting better inventory management. However, in 2022, the DOH spiked to 109.79 days, indicating potential challenges in inventory control and turnover efficiency.
Overall, investors and stakeholders should closely monitor The Gap, Inc.'s DOH trends to assess the company's inventory management practices and operational efficiency over time.
Peer comparison
Feb 3, 2024