Lowe's Companies Inc (LOW)

Days of inventory on hand (DOH)

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Inventory turnover		4.43	4.91	4.78	4.94	5.00
DOH	days	82.42	74.28	76.36	73.93	73.07

February 2, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.43
= 82.42

The days of inventory on hand (DOH) for Lowe's Companies Inc has shown some fluctuations over the past five years. In the most recent fiscal year (as of February 2, 2024), the company had an average of 82.42 days worth of inventory on hand, which represents an increase compared to the prior year when it was 74.28 days.

Looking further back, the trend indicates that in the fiscal years ending in February 3, 2023, January 28, 2022, January 29, 2021, and January 31, 2020, Lowe's DOH figures were 74.28 days, 76.36 days, 73.93 days, and 73.07 days, respectively.

This suggests that in recent years, Lowe's has been carrying more inventory on hand compared to previous years. A higher DOH value could imply potential issues with inventory management such as overstocking or slower inventory turnover, which can tie up capital and lead to increased carrying costs. It may be beneficial for Lowe's to evaluate its inventory management practices to optimize efficiency and ensure the right balance between sales demand and inventory levels.