Grocery Outlet Holding Corp (GO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.25 | 11.27 | 10.63 | 10.44 | 10.32 | 10.05 | 10.00 | 10.29 | 10.79 | 12.16 | 12.00 | 12.29 | 12.19 | 11.26 | 11.96 | ||||
| DOH | days | 35.61 | 32.37 | 34.32 | 34.96 | 35.36 | 36.31 | 36.51 | 35.47 | 33.83 | 30.03 | 30.42 | 29.69 | 29.94 | 32.40 | 30.51 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.25
= 35.61
The Days of Inventory on Hand (DOH) for Grocery Outlet Holding Corp over the past five years has shown some fluctuations but generally stayed within a range.
Based on the data provided, it is observed that in recent quarters, DOH has been around 32 to 36 days, indicating that the company holds inventory for approximately 1 to 1.5 months before selling it.
A higher DOH value may suggest potential overstocking of inventory, leading to higher carrying costs and potential obsolescence risk. Conversely, a lower DOH value may pose challenges in meeting customer demand promptly.
It is important for Grocery Outlet Holding Corp to effectively manage its inventory levels to maintain a balance between having enough stock to meet customer demand and avoiding excess holding costs. Monitoring DOH alongside sales trends and market conditions can help the company optimize its inventory management strategies and improve operational efficiency.
Peer comparison
Dec 31, 2023