Toll Brothers Inc (TOL)

Days of inventory on hand (DOH)

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Inventory turnover		0.91	0.92	1.00	0.98	0.85
DOH	days	399.27	396.42	363.32	371.88	428.27

October 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.91
= 399.27

The days of inventory on hand (DOH) of Toll Brothers Inc has exhibited fluctuations over the past five years. As of October 31, 2024, the DOH stands at 399.27 days, showing a slight increase compared to the previous year. This metric indicates that the company held its inventory for approximately 399 days before selling it, reflecting a longer turnover period.

Analyzing the trend further, we observe a general pattern of volatility in the DOH metric, with fluctuations in inventory management efficiency. The highest DOH was recorded on October 31, 2020, at 428.27 days, suggesting an extended inventory holding period, which may indicate potential inefficiencies or challenges in inventory turnover during that period.

On the other hand, the lowest DOH was reported on October 31, 2022, at 363.32 days, indicating a relatively shorter inventory holding period, potentially pointing towards improved inventory management efficiency in that particular year.

Overall, fluctuations in Toll Brothers Inc's DOH metric suggest varying levels of effectiveness in managing inventory levels and turnover across the observed period, highlighting the importance of closely monitoring inventory management practices to optimize operational efficiency and profitability.