Vestis Corporation (VSTS)

Days of inventory on hand (DOH) is a financial metric that measures how efficiently a company manages its inventory by indicating the average number of days it takes to sell its inventory. Looking at the trend for Vestis Corporation's DOH over the past several quarters, we observe the following:

- In the most recent quarter, Sep 30, 2024, the DOH stood at 23.50 days, which is slightly higher compared to the previous quarter where it was 23.18 days.
- The trend shows a slight decrease in DOH from Mar 31, 2024 (22.76 days) to Jun 30, 2024 (23.18 days), indicating a potential improvement in inventory management.
- However, there was a significant increase in DOH from Dec 31, 2023 (25.86 days) to Mar 31, 2024 (22.76 days), which may suggest challenges in selling inventory efficiently during that period.
- The DOH for the quarters ending Sep 30, 2023, and Jun 30, 2023, were exceptionally high at 106.29 days and 110.86 days, respectively. This indicates significant inefficiencies in inventory management during that time.
- The following quarters of Dec 31, 2022, and Mar 31, 2023, also reported high DOH figures, suggesting persistent inventory management issues during those periods.

In conclusion, while there have been fluctuations in Vestis Corporation's DOH over the past quarters, the company should strive to maintain a lower DOH figure consistently to indicate efficient inventory management and improve overall financial performance. Monitoring and analyzing this metric over time can help the company identify trends, make informed decisions, and implement strategies to optimize its inventory levels.

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Sep 30, 2024