Simply Good Foods Co (SMPL)

Days of inventory on hand (DOH)

		Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 25, 2019
Inventory turnover		6.98	6.48	6.77	7.21	6.62	6.09	5.82	6.46	5.66	5.61	6.16	9.62	7.91	7.82	8.33	5.18	4.96	3.62	8.04	6.93
DOH	days	52.32	56.36	53.88	50.64	55.14	59.97	62.72	56.49	64.53	65.06	59.21	37.95	46.14	46.67	43.81	70.41	73.61	100.91	45.42	52.68

February 24, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.98
= 52.32

The days of inventory on hand (DOH) for Simply Good Foods Co fluctuated over the past few years, ranging from a low of 37.95 days to a high of 100.91 days. The average DOH over this period was approximately 55 days.

A decreasing trend in DOH can indicate efficient inventory management by the company, as it suggests that the company is selling its inventory quickly. On the other hand, an increasing trend in DOH may suggest poor inventory management, potentially leading to higher carrying costs and a higher risk of inventory obsolescence.

In the most recent period, the DOH was 52.32 days, slightly below the average over the period. This indicates that Simply Good Foods Co is currently holding inventory for a period that is in line with historical averages. Monitoring inventory turnover and managing inventory levels effectively can help the company optimize its working capital and improve its overall financial performance.