Victoria's Secret & Co (VSCO)

Days of inventory on hand (DOH) is a key ratio that measures how many days, on average, a company holds its inventory before selling it. Lower DOH values indicate faster inventory turnover and potentially more efficient operations. In the case of Victoria's Secret & Co, the trend in DOH over the past three years has varied. In 2024, the company held inventory for an average of 60.31 days, slightly lower than the previous year's 65.46 days but higher than the 58.56 days recorded in 2022.

This downward trend from 2022 to 2023 and a subsequent increase in 2024 suggest some level of fluctuation in inventory management efficiency. A decrease in DOH from one year to the next may indicate improved inventory turnover, potentially resulting in reduced holding costs and better cash flow. However, the increase in DOH in 2024 compared to the previous year could indicate a slowdown in inventory turnover or possibly overstocking.

Overall, further analysis and comparison with industry benchmarks would be necessary to determine the effectiveness of Victoria's Secret & Co's inventory management practices and identify areas for improvement.

Peer comparison

Feb 3, 2024