Central Garden & Pet Company A (CENTA)
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 fluctuated over the past five years. The DOH measures the number of days a company takes to sell its inventory, indicating the efficiency of inventory management.
The trend shows an increase in DOH from 84.50 days in 2020 to 145.92 days in 2022, followed by a decrease to 129.46 days in 2023. This indicates a significant increase in the time taken to sell inventory in 2022, which was partially mitigated by a decrease in DOH in 2023. It is important to note that an increase in DOH may signify lower sales or inefficiency in inventory management, while a decrease may indicate improved sales or more effective inventory control.
In 2021, there was a considerable decrease in DOH to 107.22 days, which suggests a more efficient inventory turnover compared to the prior year. The DOH then increased in 2022, potentially signaling a slowdown in sales or challenges in managing inventory levels.
The variation in DOH indicates that Central Garden & Pet Co. has experienced fluctuations in inventory turnover, and it's essential for stakeholders to closely monitor future trends to assess the company's ability to manage inventory efficiently.
Peer comparison
Sep 30, 2023