Movado Group Inc (MOV)
Days of inventory on hand (DOH)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.21 | 3.63 | 3.48 | 3.24 | 3.42 | 2.96 | 2.98 | 3.55 | 3.89 | 3.55 | 3.15 | 3.13 | 4.35 | 3.95 | 4.24 | 4.38 | 3.91 | 3.32 | 3.32 | 3.64 | |
| DOH | days | 86.75 | 100.44 | 104.95 | 112.67 | 106.70 | 123.16 | 122.39 | 102.77 | 93.92 | 102.94 | 116.04 | 116.61 | 84.00 | 92.38 | 86.13 | 83.26 | 93.47 | 110.08 | 109.91 | 100.28 |
January 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.21
= 86.75
Movado Group Inc's days of inventory on hand (DOH) have exhibited some fluctuations over the observed period. The company's DOH ranged from a low of 83.26 days to a high of 123.16 days.
Typically, a lower number of days of inventory on hand is considered favorable as it indicates that the company is managing its inventory efficiently, while a higher number may suggest slower inventory turnover and potentially higher carrying costs.
Movado's DOH peaked at 123.16 days in the fourth quarter of fiscal year 2023, indicating a longer time for inventory to be sold or used. This could lead to increased carrying costs and potential obsolescence risks.
Conversely, the lowest DOH of 83.26 days in the first quarter of fiscal year 2020 suggests a more efficient inventory management process, enabling the company to turn over its inventory more quickly.
Overall, Movado Group Inc should aim to optimize its inventory management practices to maintain a balance between having enough inventory to meet demand and avoiding excessive carrying costs associated with holding excess inventory for extended periods.