HP Inc (HPQ)
Days of inventory on hand (DOH)
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.41 | 5.33 | 5.50 | 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 | |
| DOH | days | 67.51 | 68.48 | 66.42 | 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 |
October 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.41
= 67.51
Based on the data provided, HP Inc's days of inventory on hand (DOH) has shown some fluctuations over the past several quarters. The trend indicates that the company has been managing its inventory levels reasonably well, with some slight variations in the number of days of inventory on hand.
The DOH ranged from a low of 38.22 days on Jan 31, 2020, to a high of 68.48 days on Jul 31, 2024. Generally, a lower number of days of inventory on hand signifies that the company is efficiently managing its inventory, whereas a higher number may indicate overstocking or potential liquidity issues.
It is essential for HP Inc to monitor its inventory levels closely to ensure that they are aligned with sales demand and production needs. By optimizing inventory management, the company can reduce carrying costs, minimize the risk of obsolescence, and improve overall operational efficiency. Additionally, a consistent and optimal level of inventory can help enhance cash flow and profitability in the long run.
Peer comparison
Oct 31, 2024