Signet Jewelers Ltd (SIG)
Days of inventory on hand (DOH)
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.19 | 3.78 | 4.10 | 4.05 | 4.21 | 2.14 | 2.21 | 2.14 | 2.28 | 3.66 | 4.01 | 3.97 | 3.41 | 2.83 | 2.95 | 2.16 | 2.20 | 2.14 | 2.11 | 1.94 | |
| DOH | days | 87.09 | 96.59 | 89.00 | 90.04 | 86.77 | 170.71 | 164.85 | 170.20 | 160.32 | 99.68 | 90.94 | 91.94 | 107.13 | 128.95 | 123.85 | 169.20 | 166.27 | 170.44 | 173.13 | 187.73 |
February 1, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.19
= 87.09
The days of inventory on hand (DOH) for Signet Jewelers Ltd has shown fluctuations over the period analyzed. Starting at 187.73 days on May 2, 2020, the DOH decreased steadily to reach a low of 90.94 days on July 30, 2022. This indicates an improvement in inventory management efficiency during this period. However, the trend reversed as the DOH increased to 170.71 days by October 28, 2023, before dropping again to 87.09 days on February 1, 2025.
The DOH metric is crucial as it reflects how long, on average, a company holds its inventory before selling it. A lower DOH generally indicates more efficient inventory management, while a higher DOH may signal slow-moving inventory or potential overstocking issues.
Signet Jewelers Ltd should continue monitoring and managing its inventory levels effectively to optimize working capital and maintain a healthy balance between stocking enough inventory to meet demand and avoiding excess inventory that could tie up cash flow.