Helen of Troy Ltd (HELE)
Days of inventory on hand (DOH)
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.45 | 4.13 | 3.52 | 3.81 | 6.05 | |
| DOH | days | 81.99 | 88.47 | 103.72 | 95.80 | 60.34 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.45
= 81.99
The days of inventory on hand (DOH) for Helen of Troy Ltd has exhibited fluctuations over the past five years. From February 2020 to February 2021, there was a significant decrease in DOH from 60.34 days to 95.80 days, indicating that the company managed its inventory more efficiently during that period. However, in the following years, there was an upward trend in DOH, peaking at 103.72 days in February 2022.
The increase in DOH from 2020 to 2022 may suggest potential issues with inventory management, such as overstocking or slowing inventory turnover. This could tie up working capital and lead to higher storage costs. It is essential for the company to closely monitor and optimize its inventory levels to avoid potential obsolescence and improve cash flow.
The slight decrease in DOH in February 2023 and further reduction in February 2024 to 81.99 days may indicate efforts to streamline inventory processes and enhance operational efficiency. However, it would be beneficial for Helen of Troy Ltd to continue analyzing its inventory management strategies to strike a balance between ensuring product availability and minimizing carrying costs.