RH (RH)
Days of inventory on hand (DOH)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.73 | 3.95 | 2.17 | 2.22 | 3.94 | |
| DOH | days | 210.75 | 92.38 | 167.83 | 164.56 | 92.55 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.73
= 210.75
To analyze RH's days of inventory on hand (DOH) based on the provided data, we observe fluctuations in the metric over different periods.
- The DOH was 92.55 days on January 28, 2023, indicating the company held inventory for approximately 92.55 days before selling or using it.
- By January 31, 2023, the DOH had increased significantly to 164.56 days, suggesting a potential buildup of inventory compared to the previous period.
- The trend continued to rise, reaching 167.83 days by January 31, 2024, which may raise concerns about excess inventory levels impacting the company's working capital and efficiency.
- Subsequently, the DOH decreased to 92.38 days by February 3, 2024, indicating a potential improvement in inventory management practices or a reduction in inventory levels.
- However, by January 31, 2025, the DOH spiked to 210.75 days, reflecting a significant increase compared to earlier periods and potentially signaling challenges in inventory turnover and liquidity.
Overall, the fluctuations in RH's days of inventory on hand indicate varying inventory management practices and potential impacts on the company's operational efficiency, working capital requirements, and overall financial performance.