Walgreens Boots Alliance Inc (WBA)
Days of inventory on hand (DOH)
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 19.87 | 19.03 | 19.07 | 15.58 | 18.15 | 18.00 | 16.40 | 15.16 | 16.08 | 15.68 | 14.91 | 14.00 | 16.74 | 12.34 | 12.67 | 9.92 | 13.58 | 14.68 | 14.02 | 12.70 | |
| DOH | days | 18.37 | 19.18 | 19.14 | 23.42 | 20.11 | 20.28 | 22.26 | 24.08 | 22.70 | 23.28 | 24.47 | 26.07 | 21.81 | 29.59 | 28.80 | 36.80 | 26.89 | 24.86 | 26.03 | 28.73 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.87
= 18.37
The days of inventory on hand (DOH) ratio for Walgreens Boots Alliance Inc fluctuated over the past several quarters. Generally, a lower DOH indicates that the company is efficiently managing its inventory and selling products quickly. On the other hand, a higher DOH suggests that the company may be carrying excess inventory or facing difficulties in selling products, which can tie up resources and lead to higher holding costs.
Analyzing the trend in Walgreens Boots Alliance Inc's DOH ratio, we observe that the ratio decreased from 28.73 days in May 2020 to 18.37 days in August 2024, indicating an improvement in inventory management efficiency. The company appears to have successfully reduced the number of days it takes to sell its inventory, which can lead to lower holding costs and potential liquidation of excess inventory.
It is important for investors and stakeholders to continue monitoring the DOH ratio to ensure that Walgreens Boots Alliance Inc maintains efficient inventory management practices. Fluctuations in the ratio could indicate changes in demand, supply chain disruptions, or other operational challenges that may impact the company's financial performance and overall competitiveness in the market.
Peer comparison
Aug 31, 2024
See also:
Walgreens Boots Alliance Inc Average Inventory Processing Period (Quarterly Data)