Lowe's Companies Inc (LOW)

Days of inventory on hand (DOH)

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019	Feb 1, 2019
Inventory turnover		4.65	4.92	5.27	4.91	4.43	4.31	4.12	4.78	5.00	4.82	4.54	4.94	4.85	5.20	4.70	5.00	3.77	3.82	3.50	4.15
DOH	days	78.49	74.17	69.31	74.31	82.46	84.77	88.64	76.36	72.98	75.76	80.41	73.93	75.23	70.19	77.59	73.07	96.80	95.53	104.33	87.93

February 2, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.65
= 78.49

Days of inventory on hand (DOH) is a crucial financial metric that measures the average number of days it takes for a company to sell its inventory. A lower DOH value indicates that a company is managing its inventory efficiently, while a higher value suggests potential issues with inventory management.

Analyzing Lowe's Companies Inc's DOH over the past 20 quarters reveals some fluctuations. The company's DOH ranged from a low of 69.31 days to a high of 104.33 days during this period. The trend in DOH indicates that Lowe's has experienced some variability in its inventory management efficiency over the past few years.

In recent quarters, Lowe's has shown some improvement in managing its inventory more effectively, as indicated by lower DOH values. For example, in Nov 3, 2023, Feb 2, 2024, and Aug 4, 2023 quarters, the DOH values were relatively lower compared to previous periods.

However, it is essential for Lowe's to consistently monitor and optimize its inventory levels to ensure that it strikes the right balance between having enough inventory to meet customer demand while avoiding excessive stock levels that can tie up working capital.

Overall, while there have been fluctuations in Lowe's DOH over the past few quarters, the recent trend suggests improvements in inventory management efficiency. Continued focus on optimizing inventory levels will be vital for Lowe's to enhance its operational performance and financial health in the future.