Williams-Sonoma Inc (WSM)

Days of inventory on hand (DOH)

Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020 Feb 2, 2020 Nov 3, 2019 Aug 4, 2019 May 5, 2019
Inventory turnover 1.66 1.44 1.60 1.54 1.50 1.33 1.45 1.58 1.75 1.68 1.71 1.69 1.73 1.48 1.59 1.57 1.52 1.35 1.41 1.45
DOH days 219.83 253.05 228.67 236.99 243.59 274.41 251.40 230.98 208.79 216.82 212.87 216.01 210.95 246.42 230.24 232.03 240.07 271.29 258.42 252.59

January 28, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.66
= 219.83

Days of Inventory on Hand (DOH) is a metric used to assess how efficiently a company is managing its inventory. It indicates the number of days it takes for a company to sell its entire inventory. A lower DOH is generally preferred as it suggests faster inventory turnover and better inventory management.

Williams-Sonoma Inc's DOH has shown some fluctuations over the past several quarters, ranging from a low of 208.79 days to a high of 274.41 days. The average DOH over this period is approximately 233 days.

A DOH above the industry average may indicate potential issues such as overstocking, slow-moving inventory, or inefficiencies in the supply chain. Conversely, a DOH below the industry average could signify effective inventory management practices.

Analyzing Williams-Sonoma Inc's DOH trends over time can provide insights into the company's inventory management performance and efficiency in converting inventory into sales. It is crucial for the company to continue monitoring and optimizing its inventory levels to maintain a healthy balance between having enough inventory to meet customer demand and avoiding excess carrying costs.

See also:

Williams-Sonoma Inc Average Inventory Processing Period (Quarterly Data)