Walmart Inc (WMT)

Days of inventory on hand (DOH)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Inventory turnover		8.93	8.20	7.59	9.35	8.88
DOH	days	40.88	44.53	48.08	39.03	41.10

January 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.93
= 40.88

Walmart Inc's Days of Inventory on Hand (DOH) has shown a declining trend over the past five years. The DOH decreased from 41.10 days in 2020 to 40.88 days in 2024. This indicates that the company has been able to manage its inventory more efficiently, possibly through better inventory management practices or more effective demand forecasting.

The decreasing trend in DOH suggests that Walmart has been able to turn its inventory into sales more quickly in recent years. This can be a positive sign of operational efficiency as lower DOH levels indicate that inventory is being managed effectively and not sitting idle for extended periods.

Overall, the improving trend in DOH for Walmart Inc indicates potential strengths in inventory management practices, which could positively impact the company's financial performance through reduced carrying costs, lower obsolescence risk, and improved cash flow management.