Leslies Inc (LESL)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Inventory turnover | 4.44 | 3.74 | 5.84 | |
| DOH | days | 82.29 | 97.49 | 62.53 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.44
= 82.29
The days of inventory on hand (DOH) for Leslies Inc has shown some fluctuations over the three-year period under review. In September 2023, the company had 82.29 days of inventory on hand, compared to 97.49 days in September 2022 and 62.53 days in September 2021.
The decreasing trend from 2021 to 2022 (62.53 to 97.49 days) indicates that the company was holding inventory for a longer period in 2022, possibly due to factors such as slower sales, overstocking, or inefficiencies in inventory management. However, the decrease in DOH in 2023 suggests that the company has improved its inventory management practices, resulting in a shorter period of time that inventory is held before being sold.
It is important to delve deeper into the reasons behind these fluctuations in DOH to assess the effectiveness of Leslies Inc's inventory management strategies and their impact on the company's overall financial performance.
Peer comparison
Sep 30, 2023