Patterson Companies Inc (PDCO)
Days of inventory on hand (DOH)
| Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 24, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.63 | 5.72 | 6.01 | 5.64 | 6.41 | 5.39 | 5.77 | 5.81 | 6.63 | 5.96 | 6.20 | 6.56 | 6.39 | 5.30 | 5.72 | 6.06 | 5.29 | 5.11 | 5.56 | 5.40 | |
| DOH | days | 55.08 | 63.76 | 60.69 | 64.75 | 56.92 | 67.77 | 63.30 | 62.80 | 55.03 | 61.25 | 58.90 | 55.64 | 57.11 | 68.83 | 63.76 | 60.22 | 69.06 | 71.47 | 65.66 | 67.63 |
April 27, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.63
= 55.08
Days of Inventory on Hand (DOH) is a financial metric used to evaluate how efficiently a company manages its inventory. A lower DOH indicates that a company is able to sell its inventory quickly, while a higher DOH suggests slower inventory turnover.
Analyzing Patterson Companies Inc's historical DOH data reveals fluctuations in the efficiency of their inventory management over time. The DOH ranged from a low of 55.03 days to a high of 71.47 days over the past few years. The highest DOH of 71.47 days indicates that, at that point in time, Patterson Companies Inc held inventory for an average of approximately 71.5 days before selling it.
Overall, the average DOH for Patterson Companies Inc appears to be around 60 days. This suggests that, on average, the company holds inventory for approximately two months before selling it. It is important for the company to monitor and possibly reduce its DOH to improve cash flow and profitability by selling inventory more quickly. Further analysis of factors influencing inventory management efficiency, such as demand forecasting, supply chain management, and inventory control policies, may be beneficial for Patterson Companies Inc in optimizing their inventory turnover.
Peer comparison
Apr 27, 2024