Walmart Inc (WMT)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Inventory turnover		9.07	8.02	9.01	8.96	8.93	7.56	8.43	8.29	8.20	7.01	7.40	7.06	7.59	7.46	8.88	9.09	9.35	7.96	9.94	9.79
DOH	days	40.25	45.54	40.49	40.73	40.88	48.25	43.30	44.01	44.53	52.04	49.34	51.66	48.08	48.94	41.10	40.16	39.03	45.84	36.72	37.28

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.07
= 40.25

Days of inventory on hand (DOH) is a key financial metric that measures how many days, on average, a company holds inventory before selling it. For Walmart Inc, the DOH has shown some fluctuations over the past few years:

1. The trend of DOH for Walmart Inc has been generally increasing over the period from April 30, 2020, to January 31, 2025. This indicates that Walmart is taking longer to sell its inventory, which could imply slowing sales or challenges in inventory management.

2. The DOH ranged from a low of 36.72 days on July 31, 2020, to a high of 52.04 days on October 31, 2022. The peak DOH suggests that Walmart had excess inventory relative to its sales levels, which could lead to increased storage costs and potential obsolescence.

3. Although there are fluctuations in the DOH metric, it is important to compare it to industry benchmarks and historical trends to understand the effectiveness of Walmart's inventory management practices. A high DOH may indicate inefficiencies, while a low DOH may point to potential stockouts and lost sales opportunities.

In conclusion, the analysis of Walmart Inc's DOH suggests that the company may need to focus on optimizing its inventory levels to improve efficiency and reduce carrying costs. Monitoring and managing this metric closely can help Walmart ensure a balance between having enough inventory to meet customer demand while avoiding the risks associated with excess stock.