RH (RH)
Days of inventory on hand (DOH)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.95 | 3.94 | 4.14 | 4.79 | 5.47 | |
| DOH | days | 92.38 | 92.55 | 88.25 | 76.12 | 66.67 |
February 3, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.95
= 92.38
Based on the data provided, the days of inventory on hand (DOH) for RH have shown a consistent upward trend over the past five years. RH's DOH increased from 66.67 days in February 2020 to 92.38 days in February 2024. This indicates that RH is taking longer to sell its inventory, which could potentially tie up more cash in inventory and lead to increased holding costs.
The gradual increase in DOH suggests that RH may be facing challenges in managing its inventory efficiently. It is important for RH to closely monitor its inventory levels and sales to avoid overstocking or obsolete inventory issues. High DOH values can also indicate that RH's products are not being sold quickly enough, potentially affecting the company's profitability and liquidity.
Overall, RH's increasing trend in days of inventory on hand highlights the importance of optimizing inventory management processes to strike a balance between stocking enough inventory to meet demand and avoiding excessive carrying costs.
Peer comparison
Feb 3, 2024