Vestis Corporation (VSTS)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.66 | 3.43 | 3.29 | 3.27 | ||||
| DOH | days | 99.79 | 106.29 | 110.86 | 111.68 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.66
= 99.79
The days of inventory on hand (DOH) for Vestis Corporation have been fairly consistent over the past four quarters, ranging from 99.79 days as of December 31, 2023, to 111.68 days as of March 31, 2023.
The upward trend in DOH from December 2022 to March 2023 indicates that Vestis Corporation may be carrying more inventory relative to its sales during that period. The subsequent slight decrease in DOH in the following quarters suggests a potential improvement in inventory management efficiency.
Overall, Vestis Corporation should continue monitoring its inventory levels closely to ensure optimal balance between stocking enough inventory to meet customer demand and avoiding excess inventory that could tie up cash flow and increase holding costs.
Peer comparison
Dec 31, 2023