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

Company name
Symbol
DOH
Grocery Outlet Holding Corp
GO
35.61
Kroger Company
KR
21.99
Sprouts Farmers Market LLC
SFM
19.89