Simulations Plus Inc (SLP)

Days of inventory on hand (DOH)

		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	Aug 31, 2019	May 31, 2019
Inventory turnover		—	367.86	14.47	—	26.52	10.82	7.78	33.94	24.15	18.70	10.47	21.32	8.55	18.64	10.98	26.19	21.72	108.80	11.79	—
DOH	days	—	0.99	25.23	—	13.77	33.72	46.92	10.75	15.12	19.51	34.85	17.12	42.70	19.58	33.25	13.94	16.81	3.35	30.95	—

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The Days of Inventory on Hand (DOH) for Simulations Plus Inc fluctuated over the past years.

1. In Nov 2019, the company had a very low DOH of 3.35 days, indicating efficient management of inventory where the company could quickly convert inventory into sales.
2. In Nov 2020 and May 2021, the DOH increased significantly to 42.70 days and 34.85 days, respectively, suggesting a slowdown in the inventory turnover rate.
3. The DOH decreased to 10.75 days in Aug 2022, indicating an improvement in inventory management efficiency.
4. By Nov 2022, the DOH increased substantially to 46.92 days, indicating a potential increase in excess inventory levels or a slowdown in sales.
5. However, there was a notable improvement by May 2023 when the DOH decreased to 13.77 days, suggesting better inventory management practices.
6. The most recent DOH data available, in Nov 2023, showed a further improvement to 0.99 days, indicating a significant reduction in the time inventory spends in stock before being sold.

Overall, the trend in DOH for Simulations Plus Inc has shown fluctuations, with periods of both efficient and inefficient inventory management. Monitoring and managing inventory levels effectively will be essential for the company to maintain optimal operational efficiency and financial performance.