Science Applications International Corporation Common Stock (SAIC)

Days of inventory on hand (DOH)

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019
Inventory turnover		2,190.67	101.09	91.82	88.82	96.00	49.30	49.27	50.72	102.11	50.52	43.77	40.71	80.31	36.65	32.43	32.84	67.54	37.29	38.17	35.87
DOH	days	0.17	3.61	3.97	4.11	3.80	7.40	7.41	7.20	3.57	7.22	8.34	8.97	4.55	9.96	11.26	11.12	5.40	9.79	9.56	10.17

February 2, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2,190.67
= 0.17

The Days of Inventory on Hand (DOH) ratio measures the average number of days it takes for a company to sell its entire inventory. A lower DOH indicates that the company is managing its inventory efficiently, while a higher DOH suggests that the company may be carrying too much inventory or facing difficulty in selling it quickly.

Examining the historical data for Science Applications International Corporation Common Stock, we observe fluctuations in the DOH ratio over the past few years. From January 31, 2020, to February 2, 2024, the DOH ranged from a low of 0.17 days to a high of 11.26 days.

In recent periods, the DOH has generally been around 3 to 4 days, indicating efficient inventory management. However, there were spikes in the ratio, such as in May 1, 2020, and January 29, 2021, where the DOH exceeded 11 days, suggesting potential issues with inventory turnover during those periods.

Overall, the trend in the DOH for Science Applications International Corporation Common Stock shows variability but leans towards efficient inventory management. It is essential for the company to monitor and control its inventory levels effectively to optimize working capital utilization and enhance overall operational efficiency.