Walgreens Boots Alliance Inc (WBA)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 19.98 | 18.14 | 16.11 | 15.96 | 17.92 | |
| DOH | days | 18.26 | 20.12 | 22.66 | 22.87 | 20.37 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.98
= 18.26
Walgreens Boots Alliance Inc's days of inventory on hand (DOH) has shown a declining trend over the past five years. The company's DOH decreased from 20.37 days in 2020 to 18.26 days in 2024. This indicates that the company has been more efficient in managing its inventory levels and turning over its inventory more quickly.
A lower DOH value signifies that the company is selling its inventory faster, which can lead to lower holding costs and potential lower risk of obsolescence. In the case of Walgreens Boots Alliance Inc, the decreasing trend in DOH suggests an improvement in inventory management efficiency.
Overall, the declining trend in DOH for Walgreens Boots Alliance Inc reflects positively on the company's ability to effectively manage its inventory levels and optimize its working capital. It indicates a potential improvement in inventory turnover and operational efficiency over the years.
Peer comparison
Aug 31, 2024
See also:
Walgreens Boots Alliance Inc Average Inventory Processing Period