Tractor Supply Company (TSCO)
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 | 3.46 | 3.16 | 3.20 | 3.11 | 3.53 | 3.39 | 3.59 | 3.13 | 3.44 | 3.31 | 3.50 | 3.28 | 3.77 | 3.61 | 3.85 | 3.54 | 3.85 | 3.36 | 3.59 | 2.92 | |
| DOH | days | 105.63 | 115.56 | 113.98 | 117.43 | 103.54 | 107.72 | 101.70 | 116.72 | 106.16 | 110.18 | 104.27 | 111.42 | 96.90 | 101.15 | 94.91 | 103.25 | 94.90 | 108.77 | 101.75 | 124.87 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.46
= 105.63
Tractor Supply Company's days of inventory on hand (DOH) has fluctuated over the years based on the provided data. From March 31, 2020, to December 31, 2020, there was a decreasing trend in DOH, indicating better inventory management efficiency. However, from March 31, 2021, to June 30, 2024, the DOH fluctuated within a certain range, suggesting some variability in inventory holding practices.
The average DOH over the period appears to be around 107 days, with occasional spikes and dips. A higher DOH value signifies that the company is taking longer to sell its inventory, potentially tying up capital and increasing the risk of obsolescence. On the other hand, a lower DOH value could indicate potential stockouts or lost sales due to insufficient inventory levels.
Therefore, Tractor Supply Company should continue monitoring its inventory turnover and implement strategies to optimize its inventory levels to strike a balance between maintaining adequate stock and avoiding excess holding costs.
Peer comparison
Dec 31, 2024