Hewlett Packard Enterprise Co (HPE)
Days of inventory on hand (DOH)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.78 | 1.34 | 1.29 | 1.26 | 2.41 | |
| DOH | days | 470.02 | 271.44 | 282.04 | 288.71 | 151.51 |
October 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.78
= 470.02
Hewlett Packard Enterprise Co's days of inventory on hand (DOH) has exhibited a notable upward trend over the past five years, as indicated by the data provided. The DOH increased from 151.51 days in October 2020 to 470.02 days in October 2024. This escalation suggests that the company is holding inventory for a longer period before it is sold, which could tie up working capital and impact liquidity.
A high DOH ratio may indicate overstocking or inefficiencies in inventory management. It could also point to a potential risk of inventory obsolescence or declining demand for the company's products. On the other hand, a lower DOH ratio, such as the 151.51 days in October 2020, may reflect more efficient inventory turnover and better control over inventory levels.
Given the upward trend in DOH for Hewlett Packard Enterprise Co, further analysis into the company's inventory management practices, supply chain efficiency, and demand forecasting may be warranted to optimize working capital utilization and improve overall operational performance.
Peer comparison
Oct 31, 2024
See also:
Hewlett Packard Enterprise Co Average Inventory Processing Period