Toll Brothers Inc (TOL)

Days of inventory on hand (DOH)

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Inventory turnover		0.91	0.84	0.86	0.88	0.92	0.96	0.97	0.96	1.00	0.89	0.91	0.93	0.98	0.90	0.84	0.84	0.85	0.80	0.79	0.80
DOH	days	401.30	434.01	425.36	417.05	398.34	380.42	378.15	381.51	363.60	411.48	400.09	394.56	371.88	406.27	432.34	432.45	428.27	458.26	460.76	454.19

October 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.91
= 401.30

The Days of Inventory on Hand (DOH) for Toll Brothers Inc have fluctuated over the past several years. The average DOH over this period is approximately 405 days, indicating that on average, the company holds inventory for around 405 days before it is sold.

There was a peak in inventory days in the fourth quarter of 2020 and first quarter of 2021, where DOH exceeded 450 days. This could suggest potential inventory management challenges during that period. However, in more recent quarters, the DOH has decreased, indicating improvements in inventory management efficiency.

It is important to note that DOH can be impacted by various factors such as seasonality, production delays, or changes in customer demand. Monitoring and analyzing this ratio over time can provide insights into the company's inventory management effectiveness and operational performance.