Home Depot Inc (HD)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Inventory turnover		4.56	4.33	4.34	4.29	4.60	4.86	4.71	4.70	4.56	4.35	3.87	3.98	4.20	4.14	4.14	4.01	3.92	3.86	4.51	4.67
DOH	days	80.08	84.27	84.18	85.05	79.34	75.08	77.46	77.65	80.02	83.85	94.34	91.65	86.91	88.25	88.16	90.95	93.04	94.47	81.01	78.19

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.56
= 80.08

The days of inventory on hand (DOH) measures how long it takes for a company to sell its inventory. For Home Depot Inc, the DOH ranged from 75.08 days to 94.47 days over the period from January 30, 2022, to January 31, 2025. The trend in Home Depot's DOH appears to fluctuate, showing both increases and decreases in inventory turnover efficiency.

The highest DOH recorded was 94.47 days on April 30, 2022, which suggests that Home Depot took approximately 94.47 days to sell its inventory on that date. This longer period could indicate potential issues with inventory management efficiency or slower sales.

On the other hand, the lowest DOH was observed on January 28, 2024, at 75.08 days, indicating an improvement in inventory turnover efficiency. A lower DOH implies that Home Depot was able to sell its inventory quicker, which can be a positive sign of effective inventory management and faster sales.

Overall, variations in Home Depot's DOH over the period indicate changes in inventory management practices or sales efficiency. Monitoring trends in DOH can provide insights into the company's inventory management effectiveness and operational performance.