HP Inc (HPQ)
Days of inventory on hand (DOH)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.99 | 6.15 | 6.04 | 6.21 | 6.54 | 6.65 | 6.34 | 5.82 | 5.69 | 6.31 | 6.03 | 6.56 | 7.02 | 7.75 | 7.82 | 7.22 | 9.55 | 8.30 | 8.36 | 8.89 | |
| DOH | days | 60.94 | 59.34 | 60.44 | 58.76 | 55.80 | 54.87 | 57.55 | 62.67 | 64.10 | 57.83 | 60.53 | 55.61 | 52.03 | 47.11 | 46.68 | 50.52 | 38.22 | 43.98 | 43.67 | 41.04 |
January 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.99
= 60.94
Days of Inventory on Hand (DOH) is a crucial ratio that indicates the average number of days a company holds its inventory before selling it. Looking at the trend for HP Inc over the past eight quarters, we can observe fluctuations in the DOH metric.
In Q1 2024, HP Inc had 60.95 days of inventory on hand, slightly higher compared to the previous quarter at 59.34 days in Q4 2023. This indicates that HP Inc might be holding onto its inventory for a longer period before selling it. However, it is worth noting that Q1 2024's DOH is still within the range of historical values, signaling a relatively stable inventory management practice.
Throughout the previous quarters, there have been fluctuations in the DOH metric, with values ranging from 54.73 days in Q4 2022 to 62.65 days in Q2 2022. These variations suggest potential changes in HP Inc's inventory management efficiency and sales strategies.
Overall, while HP Inc's DOH has slightly increased in Q1 2024, the company has maintained a consistent range of days of inventory on hand over the past two years. It is essential for the company to continue monitoring and optimizing its inventory levels to ensure efficient operations and profitability.
Peer comparison
Jan 31, 2024