Leslies Inc (LESL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.77 | 4.08 | 2.91 | 2.59 | 3.18 | 3.71 | 3.57 | 3.53 | 4.82 | 5.78 | ||||
| DOH | days | 96.84 | 89.56 | 125.58 | 140.96 | 114.82 | 98.42 | 102.25 | 103.34 | 75.79 | 63.15 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.77
= 96.84
Days of Inventory on Hand (DOH) measures how many days, on average, a company holds its inventory before selling it. A higher DOH indicates that the company is taking longer to sell its inventory, which could potentially lead to higher carrying costs and obsolescence risks.
Analyzing Leslies Inc's DOH over the past few quarters, we observe fluctuations in the metric. In the most recent period, the DOH stood at 96.84 days, which represents an increase from the previous quarter's 89.56 days. This suggests that the company took longer to sell its inventory in the latest quarter compared to the preceding one.
Looking further back, we notice that the DOH has been variable over the last few years, ranging from as low as 63.15 days to as high as 140.96 days. The fluctuations in DOH could be influenced by various factors such as seasonal demand, inventory management practices, or changes in the business environment.
Overall, Leslies Inc's DOH trend indicates a need for closer monitoring of inventory management practices to optimize the balance between maintaining sufficient inventory levels to meet demand and minimizing holding costs. Further investigation into the underlying reasons for the fluctuations in DOH could provide insights for operational improvements and efficiency gains.
Peer comparison
Dec 31, 2023