Central Garden & Pet Company (CENT)
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 | 3.31 | 3.75 | 3.57 | 3.20 | 3.03 | 3.32 | 3.55 | 3.55 | 3.71 | 4.47 | 4.47 | 3.64 | 3.67 | 4.32 | 4.25 | 3.34 | 3.05 | 3.60 | 3.53 | 3.11 | |
| DOH | days | 110.30 | 97.45 | 102.13 | 114.24 | 120.38 | 109.95 | 102.91 | 102.82 | 98.35 | 81.58 | 81.70 | 100.37 | 99.32 | 84.50 | 85.83 | 109.30 | 119.57 | 101.35 | 103.34 | 117.20 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.31
= 110.30
The days of inventory on hand (DOH) for Central Garden & Pet Company have fluctuated over the past few years. From December 2019 to December 2023, the DOH ranged from a low of 81.58 days to a high of 120.38 days.
In general, a lower DOH indicates that the company is efficient in managing its inventory, while a higher DOH suggests that inventory may be sitting for an extended period, potentially tying up working capital.
During the period under review, there appears to be some seasonality or cyclical patterns in Central Garden & Pet Company's inventory management, with the DOH showing variations across different quarters. For example, the DOH was notably higher in the first quarter of each year compared to the rest of the quarters.
Overall, Central Garden & Pet Company should continue to monitor and optimize its inventory levels to strike a balance between maintaining sufficient stock to meet demand and minimizing excess inventory that could lead to higher storage costs and potential obsolescence.
Peer comparison
Dec 31, 2023