Cal-Maine Foods Inc (CALM)
Days of inventory on hand (DOH)
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.70 | 7.68 | 6.23 | 6.30 | 6.26 | |
| DOH | days | 47.39 | 47.53 | 58.57 | 57.90 | 58.30 |
June 1, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.70
= 47.39
Cal-Maine Foods Inc's days of inventory on hand (DOH) has shown a relatively stable trend over the past five years. The company's average DOH over this period was approximately 53.14 days, indicating that, on average, it takes Cal-Maine Foods Inc around 53 days to sell its inventory.
In recent years, there has been a slight improvement in inventory management as evidenced by the decrease in DOH from 58.30 days in 2020 to 47.39 days in 2024. This suggests that the company may be more efficient in managing its inventory levels or experiencing higher sales relative to inventory levels.
Overall, while Cal-Maine Foods Inc's DOH has experienced some fluctuations, the recent improvement in this metric is a positive sign of better inventory management practices, which can help enhance the company's overall operational efficiency and financial performance.