Jack In The Box Inc (JACK)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		224.08	138.18	162.41	191.77	187.81
DOH	days	1.63	2.64	2.25	1.90	1.94

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 224.08
= 1.63

The days of inventory on hand (DOH) for Jack In The Box Inc has exhibited fluctuations over the past five years. As of September 30, 2023, the company had managed to significantly reduce its DOH to 1.63 days from 2.64 days in the previous year. This indicates that Jack In The Box was able to more efficiently convert its inventory into sales during the current period.

Comparing to historical data, the DOH metric was lower in 2019 at 1.94 days, but then slightly increased in the following years until the recent decrease in 2023. This trend suggests that Jack In The Box has been improving its inventory management efficiency in recent years.

Overall, a lower DOH reflects a more efficient inventory management, as it signifies that the company is able to sell its inventory quickly without letting it sit idle for an extended period. It is crucial for the company to closely monitor and manage its inventory levels to optimize its operations and enhance profitability.