Oracle Corporation (ORCL)

Days of inventory on hand (DOH)

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Inventory turnover		40.57	49.24	49.10	76.65	52.92
DOH	days	9.00	7.41	7.43	4.76	6.90

May 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 40.57
= 9.00

Oracle Corporation's Days of Inventory on Hand (DOH) has shown varying trends over the past five years. In May 2024, the company held inventory for an average of 9.00 days, which represents an increase compared to the previous year's figure of 7.41 days in May 2023. This suggests that Oracle may have increased its inventory holdings relative to its sales during this period.

Comparing the data further back, the DOH was 7.43 days in May 2022, indicating a slight decrease from the previous year but still higher than the most recent figure. In May 2021, the DOH was 4.76 days, reflecting a significant decrease compared to the previous periods, suggesting that Oracle managed its inventory efficiently and held less inventory relative to its sales.

In May 2020, the DOH was 6.90 days, higher than the low point in 2021 but lower than in 2024. These fluctuations in the DOH metric may indicate changes in Oracle's inventory management strategy, demand patterns, or supply chain efficiency over the years.

Overall, a higher DOH value suggests that Oracle is holding more inventory relative to its sales volume, which could tie up capital and potentially indicate inefficiencies in inventory management. Conversely, a lower DOH value may signify efficient inventory management, reducing holding costs and the risk of obsolete inventory.