The TJX Companies Inc (TJX)

Days of inventory on hand (DOH)

		Jan 31, 2025	Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022	Jan 29, 2022
Inventory turnover		6.09	4.69	5.99	6.61	6.92	4.98	4.88	5.98	6.25	6.80	6.84	7.60	7.23	4.65	4.60	5.31	6.00	5.81	7.30	7.04
DOH	days	59.92	77.89	60.96	55.25	52.78	73.34	74.72	61.06	58.36	53.67	53.37	48.00	50.47	78.45	79.27	68.70	60.81	62.84	50.01	51.88

January 31, 2025 calculation

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

The analysis of The TJX Companies Inc days of inventory on hand (DOH) reveals fluctuations over the period from January 29, 2022, to January 31, 2025. The DOH ranged from a low of 48.00 days in January 31, 2023, to a high of 79.27 days in October 29, 2022. Overall, there seems to be a trend of increasing DOH over time, with peaks observed in October 2022 and November 2024. This may indicate challenges in managing inventory levels efficiently.

It is important for the company to closely monitor and manage its inventory levels to avoid excessive holding costs and potential obsolescence. A high DOH can suggest slow-moving or excess inventory, which can tie up working capital and negatively impact profitability. Conversely, a low DOH may indicate stockouts or lost sales due to insufficient inventory levels.

Further analysis, in conjunction with other financial metrics and industry benchmarks, would provide a more comprehensive understanding of The TJX Companies Inc's inventory management practices and their impact on overall operational efficiency and financial performance.