Sally Beauty Holdings Inc (SBH)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.32 | 3.35 | 3.27 | 3.37 | 3.49 | 3.53 | 3.45 | 3.56 | 3.75 | 3.39 | 3.61 | 3.48 | 3.97 | 3.66 | 3.40 | 3.58 | 4.01 | 4.01 | 3.62 | 3.46 | |
| DOH | days | 110.07 | 108.87 | 111.69 | 108.28 | 104.47 | 103.53 | 105.72 | 102.56 | 97.45 | 107.71 | 101.20 | 104.95 | 91.84 | 99.75 | 107.25 | 101.89 | 91.13 | 90.91 | 100.85 | 105.35 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.32
= 110.07
Days of Inventory on Hand (DOH) measures the average number of days it takes a company to sell its inventory. A higher DOH value indicates slower inventory turnover and potentially inefficient inventory management.
Over the past several quarters, Sally Beauty Holdings Inc's DOH has shown some fluctuations. From Dec 2019 to Dec 2020, the DOH increased steadily from 90.91 days to 101.89 days, indicating a slower inventory turnover. This trend continued until Mar 2021 when the DOH peaked at 107.25 days. Subsequently, there was a decrease in the DOH, reaching its lowest point of 91.84 days in Dec 2021, suggesting an improvement in inventory management efficiency.
However, from Mar 2022 to Sep 2022, the DOH increased again to 107.71 days, which is higher than the levels seen in the previous quarters. This increase was followed by a decline in DOH until Sep 2023 when it hit 104.47 days. From Sep 2023 to Jun 2024, the DOH remained relatively stable before slightly increasing to 110.07 days in Sep 2024.
Overall, while there have been fluctuations in Sally Beauty Holdings Inc's DOH over the quarters, the general trend indicates the company has had periods of inefficient inventory management leading to a slower turnover of inventory. It would be important for the company to closely monitor its inventory levels and implement strategies to improve inventory turnover efficiency in order to optimize its working capital and profitability.
Peer comparison
Sep 30, 2024