Simply Good Foods Co (SMPL)

Days of inventory on hand (DOH)

		Aug 31, 2024	May 25, 2024	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
Inventory turnover		5.77	7.68	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
DOH	days	63.27	47.54	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

August 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.77
= 63.27

The days of inventory on hand (DOH) for Simply Good Foods Co have fluctuated over the periods provided, ranging from as low as 37.95 days to as high as 100.91 days. The average DOH over the periods analyzed is approximately 56.45 days.

A higher DOH indicates that the company holds inventory for a longer period before selling it, which may suggest potential issues like overstocking or slow-moving inventory. On the other hand, a lower DOH reflects more efficient inventory management and faster turnover of goods.

Analyzing the trend, it appears that the company experienced a significant increase in DOH over the periods, peaking at 100.91 days and then gradually trending downwards to around 47.54 days before showing some volatility.

Further investigation into the reasons behind these fluctuations in DOH would be necessary to assess the effectiveness of Simply Good Foods Co's inventory management strategies and their impact on the company's financial performance.