Toro Co (TTC)
Days of inventory on hand (DOH)
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.93 | 3.70 | 3.71 | 3.45 | 3.82 | 3.86 | 3.71 | 3.67 | 3.78 | 4.08 | 4.14 | 4.30 | 4.69 | 4.99 | 5.08 | 4.48 | 4.56 | 4.44 | 4.14 | 4.03 | |
| DOH | days | 92.83 | 98.55 | 98.38 | 105.86 | 95.49 | 94.64 | 98.26 | 99.58 | 96.57 | 89.40 | 88.21 | 84.92 | 77.76 | 73.08 | 71.87 | 81.42 | 80.13 | 82.13 | 88.12 | 90.58 |
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 some fluctuations over the past two years. From January 2020 to October 2024, DOH has ranged from a low of 71.87 days to a high of 105.86 days. The trend appears to have peaked in February 2024 at 105.86 days, which indicates that the company was holding inventory for over three months on average. Subsequently, there was a slight decrease in DOH by August 2024 to 98.55 days, which may suggest some management efforts to reduce excess inventory.
Overall, Toro Co's DOH has generally remained above 90 days, indicating that the company may hold a significant amount of inventory relative to its sales levels. It is important for the company to continue monitoring and managing its inventory levels effectively to balance the costs associated with carrying inventory against the risk of stockouts and obsolescence.