Central Garden & Pet Company A (CENTA)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.98 | 2.82 | 2.50 | 3.40 | 4.32 | |
| DOH | days | 122.59 | 129.46 | 145.92 | 107.22 | 84.50 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.98
= 122.59
The days of inventory on hand (DOH) for Central Garden & Pet Company A have displayed a fluctuating trend over the past five years. In 2020, the company held inventory for an average of 84.50 days before selling it, which increased significantly to 107.22 days in 2021. The DOH further rose to 145.92 days in 2022, indicating a slower inventory turnover rate. However, in 2023 and 2024, the DOH showed a decreasing trend to 129.46 days and 122.59 days, respectively, suggesting improved efficiency in managing inventory levels.
Overall, the company's DOH has shown some inconsistency, with a notable increase in 2022 followed by a gradual decline in the subsequent years. A high DOH value could point towards excess inventory or slow sales, while a low DOH value may indicate efficient inventory management but could also lead to stockouts if not carefully monitored. It is important for Central Garden & Pet Company A to strike a balance in its inventory management to optimize working capital and operational efficiency.
Peer comparison
Sep 30, 2024