RH (RH)
Days of inventory on hand (DOH)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.73 | 2.07 | 2.17 | 2.37 | 3.20 | 2.54 | 3.12 | 3.09 | 2.93 | 2.91 | 2.82 | 3.28 | 2.88 | 3.53 | 3.00 | 2.48 | 2.80 | 2.59 | 3.29 | 3.48 | |
| DOH | days | 210.75 | 176.28 | 168.00 | 153.86 | 113.94 | 143.97 | 117.11 | 118.11 | 124.36 | 125.37 | 129.33 | 111.31 | 126.83 | 103.30 | 121.75 | 147.47 | 130.37 | 140.78 | 110.80 | 104.84 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.73
= 210.75
Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds inventory before it is sold. A higher DOH indicates that the company is taking longer to sell its inventory, which may tie up capital and increase carrying costs.
Based on the data provided, we can observe fluctuations in RH's DOH over the given period. The trend shows some variability, with DOH ranging between 104.84 days to 210.75 days.
RH's DOH increased from January 29, 2022, to July 31, 2022, indicating a longer holding period for inventory during this time. This increase could be due to factors such as changes in consumer demand, supply chain disruptions, or inventory management issues.
However, from October 29, 2022, to October 31, 2024, we can observe some fluctuations in the DOH, with values ranging between 117.11 days to 176.28 days. The increase in DOH towards the end of the period, reaching 210.75 days on January 31, 2025, suggests a significant increase in the time taken to sell inventory.
Overall, a detailed analysis of RH's DOH trend could provide insights into the efficiency of their inventory management practices, supply chain performance, and potential impacts on working capital management. It is essential for RH to closely monitor and optimize their inventory levels to ensure efficient operations and better financial performance.