The Chefs Warehouse Inc (CHEF)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 11.81 | 10.32 | 12.15 | 15.09 | 9.68 | |
| DOH | days | 30.91 | 35.36 | 30.04 | 24.18 | 37.71 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.81
= 30.91
The days of inventory on hand (DOH) for The Chefs Warehouse Inc has fluctuated over the past five years, as evidenced by the data provided. In 2023, the company had an average of 30.91 days of inventory on hand, showing a slight decrease compared to 35.36 days in 2022. This decrease indicates an improvement in inventory management efficiency, as the company was able to sell its inventory quicker in 2023.
Comparing the current DOH to 2021 and 2020, the trend shows an overall improvement in managing inventory levels. In 2021, the company had 30.04 days of inventory on hand, and in 2020, it was 24.18 days. The decrease in DOH from 2020 to 2021 further indicates that The Chefs Warehouse Inc has been successful in optimizing its inventory turnover, potentially reducing carrying costs and minimizing the risk of obsolete inventory.
However, when looking at the DOH in 2019, which was 37.71 days, there was a significant increase in the number of days of inventory on hand. This could suggest that there were inventory management challenges during that period that resulted in slower inventory turnover.
Overall, the company's trend of decreasing DOH over the past few years reflects a positive direction in managing inventory levels efficiently. It suggests that The Chefs Warehouse Inc has been improving its inventory management practices to enhance operational effectiveness and financial performance.
Peer comparison
Dec 31, 2023