Lowe's Companies Inc (LOW)

Days of inventory on hand (DOH)

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Inventory turnover		3.21	4.43	3.41	4.91	3.50
DOH	days	113.88	82.42	107.18	74.28	104.38

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.21
= 113.88

Based on the data provided, Lowe's Companies Inc had a varying level of days of inventory on hand (DOH) over the period mentioned.

- As of January 31, 2023, the DOH was reported at 104.38 days, indicating that the company had a significant amount of inventory on hand relative to its sales level, which could potentially tie up capital and increase carrying costs.

- Subsequently, by February 3, 2023, the DOH had decreased to 74.28 days, suggesting an improvement in inventory management efficiency as the company was able to reduce the number of days it takes to sell its inventory.

- Moving forward to January 31, 2024, the DOH increased to 107.18 days, indicating that the company might have faced challenges in managing its inventory effectively during this period.

- However, by February 2, 2024, the DOH decreased to 82.42 days, signaling a positive trend in inventory management efficiency compared to the previous period.

- Finally, as of January 31, 2025, the DOH rose to 113.88 days, the highest level in the data series. This increase suggests that Lowe's had a longer period of inventory on hand compared to previous years, potentially impacting working capital and liquidity.

In conclusion, the analysis of Lowe's Companies Inc's days of inventory on hand reveals fluctuations in inventory management efficiency over the period, with variations in the number of days it took to sell its inventory. Further investigation into the underlying reasons for these fluctuations would be necessary to assess the impact on the company's operations and financial performance effectively.