Jack In The Box Inc (JACK)

Days of inventory on hand (DOH)

Sep 30, 2024 Jul 7, 2024 Apr 14, 2024 Jan 21, 2024 Sep 30, 2023 Jul 9, 2023 Apr 16, 2023 Jan 22, 2023 Sep 30, 2022 Jul 10, 2022 Apr 17, 2022 Jan 23, 2022 Sep 30, 2021 Jun 30, 2021 Apr 11, 2021 Jan 17, 2021 Sep 30, 2020 Jul 5, 2020 Apr 12, 2020 Jan 19, 2020
Inventory turnover 187.36 186.56 198.94 190.53 224.18 189.55 167.37 167.13 138.18 97.15 77.21 146.71 162.41 167.79 158.81 136.16 139.98 74.23 85.67 113.27
DOH days 1.95 1.96 1.83 1.92 1.63 1.93 2.18 2.18 2.64 3.76 4.73 2.49 2.25 2.18 2.30 2.68 2.61 4.92 4.26 3.22

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 187.36
= 1.95

The days of inventory on hand (DOH) for Jack In The Box Inc have fluctuated over the past several quarters. In the most recent quarter, as of September 30, 2024, the company had 1.95 days of inventory on hand, indicating that it takes approximately 1.95 days for the company to sell through its inventory. This is slightly lower compared to the previous quarter's DOH of 1.96 days.

Looking back over the past few quarters, there has been some variability in the DOH figure. The lowest DOH was reported in the third quarter of fiscal year 2023 at 1.63 days, while the highest DOH was seen in the first quarter of fiscal year 2022 at 4.92 days. Overall, the trend in recent quarters suggests that the company has been able to manage its inventory efficiently, with lower DOH figures indicating faster inventory turnover.

Analyzing the DOH metric can provide insights into the company's inventory management efficiency and the effectiveness of its sales operations. A lower DOH generally indicates that the company is managing its inventory well by quickly converting it into sales, which can lead to lower holding costs and potentially higher profitability. On the other hand, a higher DOH may imply slower inventory turnover, which could tie up capital and lead to increased carrying costs.

It is important for Jack In The Box Inc to continue monitoring its DOH metric and strive for a balance between ensuring adequate inventory levels to meet demand while also minimizing excess inventory. This analysis can help the company optimize its inventory management practices and improve its overall financial performance.