Sally Beauty Holdings Inc (SBH)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 3.60 | 3.55 | 3.64 | |
| DOH | days | 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 | 101.39 | 102.93 | 100.16 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.37
= 108.28
Days of Inventory on Hand (DOH) is a crucial metric for assessing Sally Beauty Holdings Inc's effectiveness in managing its inventory. DOH measures the number of days it takes for the company to sell its entire inventory. A higher DOH suggests slower inventory turnover, which can tie up working capital and increase carrying costs.
Over the past eight quarters, Sally Beauty Holdings Inc's DOH has shown a varying trend. In Q1 2024, the DOH was 201.46 days, the highest among the reported periods. This increase may indicate potential issues with inventory management or slow sales relative to the level of inventory held.
The previous quarter, Q4 2023, also had a relatively high DOH of 194.52 days, indicating a prolonged period to sell inventory. This pattern of elevated DOH in consecutive quarters could raise concerns about inventory obsolescence or excess stock levels.
Conversely, in Q3 2022, the DOH was at a lower point of 182.66 days, suggesting improved efficiency in inventory turnover during that period. However, this improvement was not sustained, as the metric fluctuated in subsequent quarters.
Overall, Sally Beauty Holdings Inc's DOH has exhibited volatility, with periods of both high and low values. Investors and stakeholders should closely monitor the DOH trend to assess the company's inventory management effectiveness and potential impacts on financial performance.
Peer comparison
Dec 31, 2023