Simulations Plus Inc (SLP)

Days of inventory on hand (DOH)

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Inventory turnover		19.49	—	—	367.86	14.47	—	26.52	10.82	7.78	—	24.15	18.70	10.47	21.32	8.55	18.64	10.98	26.19	21.72	108.80
DOH	days	18.73	—	—	0.99	25.23	—	13.77	33.72	46.92	—	15.12	19.51	34.85	17.12	42.70	19.58	33.25	13.94	16.81	3.35

August 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.49
= 18.73

The days of inventory on hand (DOH) for Simulations Plus Inc have shown fluctuation over the past few periods. The DOH on Aug 31, 2024, was 18.73 days, indicating that the company held inventory for approximately 18.73 days before selling it. This represents a decrease compared to the prior quarter, when there was no data available, implying more efficient inventory management.

On a year-over-year basis, the DOH has decreased from 25.23 days on Aug 31, 2023, to 18.73 days on Aug 31, 2024, suggesting an improvement in inventory turnover efficiency. However, it is important to note the intermittent missing data points within the time series, which may hinder the ability to discern a consistent trend.

Overall, the trend in DOH for Simulations Plus Inc indicates a general tendency towards lower inventory holding periods, which can be a positive indicator of effective inventory management and potential cost reductions associated with inventory holding. Further analysis over consecutive periods can provide a clearer picture of the company's inventory management efficiency.