Kroger Company (KR)
Days of inventory on hand (DOH)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 16.60 | 15.59 | 16.04 | 14.54 | 13.62 | |
| DOH | days | 21.99 | 23.41 | 22.75 | 25.10 | 26.79 |
February 3, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.60
= 21.99
The days of inventory on hand (DOH) for Kroger Company has shown a consistent downward trend over the past five years. In 2024, the DOH stands at 21.99 days, which is a decrease from 23.41 days in 2023, 22.75 days in 2022, 25.10 days in 2021, and 26.79 days in 2020.
A decreasing trend in DOH indicates that Kroger is managing its inventory more effectively by selling its products at a faster rate relative to the amount of inventory held. This could imply improved inventory turnover and potentially lower carrying costs.
It is essential for Kroger to maintain an optimal level of inventory to meet customer demand while avoiding stockouts or excess holdings. By monitoring and analyzing the DOH metric, Kroger can continue to optimize its inventory management processes and improve overall efficiency in its operations.
Peer comparison
Feb 3, 2024