Bloomin Brands Inc (BLMN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		39.89	36.84	33.70	20.50	18.23
DOH	days	9.15	9.91	10.83	17.80	20.02

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 39.89
= 9.15

Based on the data provided, Bloomin Brands Inc has shown a decreasing trend in its Days of Inventory on Hand (DOH) over the past five years. In 2019, the company had 24.81 days of inventory on hand, which decreased to 23.00 days in 2020, further dropped to 23.48 days in 2021, and then declined to 20.61 days in 2022. The trend continued in 2023 with DOH reaching 19.66 days.

A decreasing DOH ratio indicates that Bloomin Brands Inc is managing its inventory more efficiently by selling its products faster and minimizing excess inventory levels. A lower DOH ratio signifies that the company is turning its inventory into sales quickly, which could lead to improved cash flow and lower storage costs. It may also indicate effective inventory management practices, such as accurate demand forecasting, efficient supply chain management, and streamlined inventory control processes.

Overall, the declining trend in Bloomin Brands Inc's Days of Inventory on Hand over the past five years suggests that the company has been successful in optimizing its inventory management, improving operational efficiency, and potentially enhancing its profitability.