Sally Beauty Holdings Inc (SBH)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.32 | 3.49 | 3.75 | 3.97 | 4.01 | |
| DOH | days | 110.05 | 104.47 | 97.45 | 91.84 | 91.07 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.32
= 110.05
Sally Beauty Holdings Inc's days of inventory on hand (DOH) has shown a consistent uptrend over the past five years, indicating a potential inefficiency in managing inventory levels. The DOH increased from 91.07 days in 2020 to 110.05 days in 2024. This suggests that, on average, it takes Sally Beauty Holdings Inc approximately 110 days to sell its entire inventory.
The rising trend in DOH may signal excess inventory or a slowdown in sales, both of which can lead to increased holding costs, potential obsolescence, and reduced liquidity. It is essential for the company to closely monitor and optimize its inventory management practices to improve efficiency and profitability in the long run.
Peer comparison
Sep 30, 2024