Aramark Holdings (ARMK)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		48.75	44.86	28.89	27.19	27.85	27.62	28.21	30.89	31.91	27.88	26.76	24.41	26.31	28.51	32.06	36.62	37.04	35.57	36.92	36.09
DOH	days	7.49	8.14	12.63	13.43	13.10	13.22	12.94	11.82	11.44	13.09	13.64	14.95	13.87	12.80	11.39	9.97	9.86	10.26	9.89	10.11

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 48.75
= 7.49

Days of Inventory on Hand (DOH) is a key financial ratio that indicates how many days a company takes to convert its inventory into sales. A lower DOH implies that inventory turnover is higher, which is generally more favorable as it suggests efficient inventory management.

Analyzing Aramark Holdings' historical DOH data reveals fluctuations over time. The trend shows that the company's inventory management has improved in recent periods, as the DOH has generally decreased. For instance, in more recent quarters such as Dec 31, 2023, and Sep 30, 2023, the DOH was lower compared to previous periods.

The decreasing trend in DOH indicates that Aramark Holdings has been able to efficiently manage its inventory levels and convert inventory into sales at a faster pace. This could be a result of better demand forecasting, improved inventory control systems, or more effective inventory turnover strategies.

However, it is essential to monitor the DOH ratio consistently to ensure that the trend continues in a favorable direction. Sudden increases in DOH could indicate potential issues such as overstocking or slowing sales, which may require management's attention to avoid inefficiencies in inventory management.