Tapestry Inc (TPR)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.16 | 2.22 | 2.26 | 2.03 | 2.12 | 2.15 | 2.08 | 1.82 | 2.05 | 2.17 | 2.54 | 2.12 | 2.27 | 2.04 | 2.42 | 2.00 | 2.34 | 2.37 | 2.65 | 2.24 | |
| DOH | days | 168.97 | 164.50 | 161.46 | 180.15 | 172.47 | 170.06 | 175.79 | 200.61 | 178.40 | 168.50 | 143.57 | 172.19 | 161.14 | 178.62 | 151.13 | 182.69 | 156.19 | 154.06 | 137.97 | 163.02 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.16
= 168.97
Days of Inventory on Hand (DOH) is a financial ratio that measures the number of days a company takes to sell its average inventory. A lower DOH indicates efficient inventory management, while a higher DOH may signal overstocking or slow sales.
Analyzing Tapestry Inc's DOH over the past 20 quarters, we observe fluctuations in the ratio. In the most recent quarter, as of June 30, 2024, Tapestry Inc had 168.97 days of inventory on hand, which was higher than in the previous quarter. This indicates that the company held inventory for a longer period, which may suggest slower inventory turnover or excess inventory levels.
Looking further back, the trend in DOH seems to vary quarter to quarter, with some quarters showing lower DOH indicating better inventory management, while others showing higher DOH implying challenges in managing inventory efficiently.
It is important for Tapestry Inc to closely monitor its DOH and assess the reasons behind fluctuations to optimize inventory levels, minimize carrying costs, and improve overall operational efficiency. Efficient inventory management plays a crucial role in enhancing the company's profitability and cash flow.
Peer comparison
Jun 30, 2024