The TJX Companies Inc (TJX)

Days of inventory on hand (DOH)

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Inventory turnover		6.09	8.28	6.36	6.21	7.93
DOH	days	59.92	44.09	57.37	58.76	46.00

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.09
= 59.92

The Days of Inventory on Hand (DOH) ratio for The TJX Companies Inc has fluctuated over the past few years, ranging from 44.09 days to 59.92 days.

In January 2025, the company had an inventory turnover of approximately 59.92 days, indicating that it takes around 59.92 days for the company to sell its inventory. This may suggest that the company might be holding onto its inventory for a longer period before selling it, which could tie up capital and lead to potential obsolescence risks.

On the other hand, in February 2024, the company had a lower DOH of 44.09 days, implying a faster inventory turnover rate compared to the other periods. A lower DOH can be a positive indicator as it suggests that the company is managing its inventory efficiently, resulting in reduced holding costs and potential risks.

Overall, the fluctuation in The TJX Companies Inc's DOH ratio indicates varying efficiency levels in managing its inventory, which can impact working capital management and profitability. Monitoring this ratio over time can provide insights into the company's inventory management practices and potential operational improvements.