Simulations Plus Inc (SLP)

Days of inventory on hand (DOH)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Inventory turnover		26.16	14.47	7.78	10.47	10.98
DOH	days	13.95	25.23	46.92	34.85	33.25

August 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 26.16
= 13.95

The days of inventory on hand (DOH) for Simulations Plus Inc have fluctuated over the past five years, as follows:

- In 2020, the company held inventory for an average of 33.25 days.
- In 2021, the DOH decreased to 34.85 days, indicating a slight improvement in managing inventory levels.
- In 2022, the DOH increased significantly to 46.92 days, suggesting a slower turnover of inventory.
- However, in 2023, there was a substantial improvement as the DOH decreased to 25.23 days, indicating better management of inventory levels.
- The most recent data for 2024 shows a further improvement in efficiency, with the DOH declining to 13.95 days, reflecting a more effective inventory management strategy.

Overall, the trend shows that Simulations Plus Inc has made progress in optimizing its inventory turnover, resulting in a shorter time period for which inventory is held on hand, potentially leading to better cash flow and working capital management.