Travel + Leisure Co (TNL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		1.29	1.29	1.36	1.44	1.49	1.47	1.45	1.42	1.35	1.31	1.20	1.20	1.05	1.93	1.59	1.31	1.09	0.01	0.04	0.10
DOH	days	282.74	282.82	268.57	253.37	244.84	248.60	252.57	257.26	270.46	278.12	304.04	305.02	346.21	188.90	229.78	278.51	336.29	25,569.21	8,183.68	3,585.24

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.29
= 282.74

Days of Inventory on Hand (DOH) is a ratio that measures how many days, on average, a company holds its inventory before it is sold. Lower DOH values indicate that the company is selling its inventory more quickly, which is generally favorable.

Analyzing the data for Travel + Leisure Co, we observe a significant increase in DOH from March 2020 to September 2020, reaching 25,569.21 days, which may indicate issues with inventory management during that period. However, the company was able to significantly reduce its DOH by the end of December 2020 to 336.29 days, suggesting improvements in inventory turnover efficiency.

From March 2021 onwards, Travel + Leisure Co maintained relatively lower DOH figures, indicating better inventory management practices. The company consistently reduced its DOH over subsequent quarters, reaching 244.84 days by December 2023.

Overall, the decreasing trend in DOH values for Travel + Leisure Co from 2021 to 2024 suggests that the company has been effectively managing its inventory levels and improving its inventory turnover efficiency, which can positively impact its financial performance and profitability.