Toro Co (TTC)
Days of inventory on hand (DOH)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.93 | 3.82 | 3.78 | 4.69 | 4.56 | |
| DOH | days | 92.83 | 95.49 | 96.57 | 77.76 | 80.13 |
October 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.93
= 92.83
The days of inventory on hand (DOH) for Toro Co have shown a fluctuating trend over the past five years. In particular, there was an increase in DOH from 2020 to 2022, reaching a peak of 96.57 days in 2022 before slightly decreasing in 2023 and 2024. This implies that the company was holding inventory for a longer period in 2022 compared to the other years, indicating potential inefficiencies in inventory management during that period.
However, it is worth noting that the DOH metric decreased in 2023 and 2024, which suggests improvements in inventory turnover efficiency. A lower DOH generally indicates that the company is selling its inventory at a faster rate or managing its inventory levels more effectively. Overall, Toro Co should continue to monitor its inventory levels closely to ensure optimal balance between holding enough inventory to meet demand while minimizing carrying costs.