Prestige Brand Holdings Inc (PBH)

Days of inventory on hand (DOH)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover		3.61	3.42	3.15	3.00	3.10	3.08	3.44	3.54	3.87	4.22	3.98	3.89	3.44	3.44	3.57	3.49	3.54	3.35	3.20	3.13
DOH	days	101.08	106.83	115.85	121.53	117.78	118.47	106.25	103.24	94.23	86.43	91.76	93.84	105.99	106.11	102.34	104.44	103.09	109.04	114.06	116.63

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.61
= 101.08

Days of inventory on hand (DOH) for Prestige Brand Holdings Inc has shown fluctuating trends over the past few quarters. The DOH has ranged from as high as 121.53 days in June 2023 to as low as 86.43 days in March 2022. Generally, a lower DOH indicates that the company is managing its inventory efficiently and turning over its inventory quickly, while a higher DOH suggests slower inventory turnover.

From the data provided, it appears that the company's inventory management improved in the earlier quarters of 2022, with DOH decreasing from December 2021 to March 2022. However, this trend reversed in the latter part of 2022 and early 2023, as the DOH increased steadily before peaking in June 2023.

A high DOH can tie up working capital and increase holding costs, while a low DOH may risk stockouts and lost sales. Therefore, Prestige Brand Holdings Inc should strive to find a balance in managing its inventory levels to optimize its operations and financial performance. Monitoring and analyzing the DOH trend over time can help the company make informed decisions regarding inventory management strategies and working capital optimization.