Urban Outfitters Inc (URBN)
Days of inventory on hand (DOH)
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.23 | 5.72 | 5.36 | 6.60 | 6.66 | |
| DOH | days | 58.62 | 63.79 | 68.07 | 55.28 | 54.77 |
January 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.23
= 58.62
The days of inventory on hand (DOH) for Urban Outfitters Inc have exhibited a fluctuating trend over the past five years. In Jan 31, 2024, the company had 58.62 days of inventory on hand, showing an improvement from the previous year where it was 63.79 days. This indicates that the company managed its inventory more efficiently in the most recent period.
Comparing the current year to Jan 31, 2020, where the DOH was 54.77 days, there has been an increase in the days of inventory on hand. This may suggest that Urban Outfitters Inc is carrying more inventory relative to its sales level, potentially tying up more capital in inventory which could have been used elsewhere.
Additionally, when looking at the trend since Jan 31, 2020, the DOH has been gradually increasing, indicating a potential inefficiency in managing inventory levels. It is important for the company to closely monitor and optimize its inventory management practices to ensure that inventory turnover is operating at an optimal level to support profitability and liquidity.
Peer comparison
Jan 31, 2024