Leslies Inc (LESL)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Inventory turnover | 5.57 | 4.44 | 3.74 | 5.84 | |
| DOH | days | 65.47 | 82.29 | 97.49 | 62.53 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.57
= 65.47
The days of inventory on hand (DOH) for Leslies Inc have varied over the past four years, indicating fluctuations in the efficiency of managing inventory.
In 2021, the DOH was 62.53 days, suggesting that on average, the company held inventory for around 62.5 days before selling it. This figure increased to 97.49 days in 2022, which indicates a significant slowdown in inventory turnover and may suggest overstocking or slow-moving inventory issues during that year.
However, in 2023, the DOH decreased to 82.29 days, indicating some improvement in inventory management efficiency compared to the previous year. It is worth noting that this figure remained relatively high, suggesting that the company still struggled to optimize inventory turnover.
In the most recent year, 2024, the DOH further decreased to 65.47 days, indicating a more efficient management of inventory compared to the preceding years. This reduction suggests that the company may have adjusted its inventory practices to improve efficiency and reduce holding costs.
Overall, the fluctuating trend in the DOH over the past four years highlights the importance for Leslies Inc to continuously monitor and optimize its inventory management strategies to strike a balance between having enough inventory to meet demand and minimizing carrying costs.
Peer comparison
Sep 30, 2024