HP Inc (HPQ)
Days of inventory on hand (DOH)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.41 | 6.15 | 6.65 | 6.31 | 7.75 | |
| DOH | days | 67.51 | 59.34 | 54.87 | 57.83 | 47.11 |
October 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.41
= 67.51
The Days of Inventory on Hand (DOH) for HP Inc has shown a fluctuating trend over the past five years. The DOH indicates the average number of days it takes for the company to sell its inventory. A higher DOH value suggests that the company is holding onto its inventory for a longer period before selling it, which may tie up capital and increase storage costs.
From 2020 to 2022, HP Inc's DOH decreased steadily, indicating an improvement in inventory management efficiency as the company reduced the time taken to sell its inventory. However, in 2023 and 2024, the DOH increased, suggesting a potential increase in the time it takes for HP Inc to sell its inventory.
Overall, HP Inc should continue to monitor its inventory management practices to ensure that inventory levels are optimized to balance between meeting customer demand and avoiding excess inventory holding costs.
Peer comparison
Oct 31, 2024