Central Garden & Pet Company (CENT)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.82 | 2.50 | 3.40 | 4.32 | 3.60 | |
| DOH | days | 129.46 | 145.92 | 107.22 | 84.50 | 101.35 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.82
= 129.46
The days of inventory on hand (DOH) for Central Garden & Pet Co. have exhibited fluctuations over the past five years. In Sep 30, 2023, the DOH stood at 129.46 days, marking a decrease from the previous year's 145.92 days. This increase from Sep 25, 2021 to Sep 24, 2022 suggests that the company had more inventory on hand relative to its cost of goods sold, which could indicate potential inefficiencies in inventory management. The notable spike in DOH from Sep 26, 2020 to Sep 25, 2021 reflects a significant increase in the number of days the company's inventory was held before being sold, potentially tying up capital and impacting cash flow. Conversely, the decrease from Sep 28, 2019 to Sep 26, 2020 may indicate improvements in inventory management efficiency during that period. It is important for the company to monitor and manage its inventory levels effectively to optimize working capital and minimize carrying costs.
Peer comparison
Sep 30, 2023