Home Depot Inc (HD)

Days of inventory on hand (DOH)

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Inventory turnover		4.85	4.49	4.43	4.08	4.20	4.07	3.96	4.01	4.55	4.76	5.06	4.87	5.25	5.13	5.83	4.93	5.00	4.65	4.91	4.65
DOH	days	75.28	81.34	82.43	89.42	86.82	89.77	92.28	91.12	80.29	76.74	72.10	74.96	69.55	71.15	62.66	74.01	73.00	78.48	74.33	78.47

January 28, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.85
= 75.28

Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its inventory. A lower DOH indicates that inventory is turning over quickly, which is generally favorable as it implies efficient inventory management.

Looking at Home Depot Inc's historical DOH data, we observe fluctuations over the past few years. In recent quarters, the DOH has ranged from around 72 days to 92 days. The trend seems to be somewhat cyclical, with periodic peaks and troughs.

In the latest period, Home Depot Inc had a DOH of 75.28 days, indicating that, on average, the company held inventory for approximately 75 days before selling it. This is a slight improvement compared to the previous quarter's DOH of 81.34 days.

It's important to note that DOH figures should be analyzed in conjunction with industry benchmarks and company-specific factors. A high DOH could suggest overstocking or slow-moving inventory, while a low DOH might indicate efficient inventory turnover but could also point towards stockouts or supply chain issues.

Overall, monitoring DOH over time can provide valuable insights into Home Depot Inc's inventory management efficiency and help identify any potential areas for improvement in optimizing inventory levels.