The TJX Companies Inc (TJX)
Days of inventory on hand (DOH)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.28 | 7.93 | 7.49 | 7.47 | 7.83 | |
| DOH | days | 44.09 | 46.00 | 48.73 | 48.84 | 46.61 |
February 3, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.28
= 44.09
The Days of Inventory on Hand (DOH) for The TJX Companies Inc have shown a declining trend over the past five fiscal years. As of February 3, 2024, the company had an average of 44.09 days worth of inventory on hand, which has decreased from 46.00 days in January 28, 2023, and 46.61 days in February 1, 2020. This indicates that the company has been able to manage its inventory more efficiently and reduce the number of days it takes to turn its inventory into sales.
A lower DOH value generally suggests that the company is selling its products more quickly, which can be a positive sign of effective inventory management and operational efficiency. It may also imply that the company is agile in responding to changing market demands and reducing the risk of holding excess or obsolete inventory. However, it is essential to consider industry standards and company-specific factors in interpreting this ratio to evaluate the effectiveness of inventory management practices.
Peer comparison
Feb 3, 2024