The Andersons Inc (ANDE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 12.00 | 9.61 | 6.62 | 5.95 | 6.44 | |
| DOH | days | 30.41 | 37.98 | 55.10 | 61.31 | 56.65 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.00
= 30.41
The days of inventory on hand (DOH) for Andersons Inc. have shown a decreasing trend over the past five years, indicating a more efficient management of inventory. The DOH decreased from 55.83 days in 2019 to 30.41 days in 2023, suggesting that the company has been able to sell its inventory at a faster rate or has been managing its inventory levels more effectively.
A lower DOH generally reflects better inventory management, as it means that the company is selling its inventory quicker and may be holding less excess or obsolete inventory. This can improve the company's cash flow and profitability by reducing holding costs and the risk of inventory write-downs.
The decreasing trend in DOH for Andersons Inc. could be a positive sign for investors and stakeholders, as it indicates that the company has been successful in optimizing its inventory levels and improving its operational efficiency in managing inventory.
Peer comparison
Dec 31, 2023