The Chefs Warehouse Inc (CHEF)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 11.71 | 11.81 | 10.32 | 12.15 | 15.09 | |
| DOH | days | 31.17 | 30.91 | 35.36 | 30.04 | 24.18 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.71
= 31.17
The days of inventory on hand (DOH) for The Chefs Warehouse Inc have shown an increasing trend over the years. As of December 31, 2020, the company had an inventory turnover period of 24.18 days, which increased to 30.04 days by the end of 2021. Subsequently, the DOH further rose to 35.36 days by December 31, 2022, indicating a longer period for the company to sell its inventory.
However, there was a slight improvement in inventory management as of December 31, 2023, where the DOH decreased to 30.91 days. This improvement was sustained as of December 31, 2024, with the DOH at 31.17 days.
Overall, the increasing trend in DOH until 2022 may suggest potential issues with inventory management efficiency and liquidity. The subsequent slight improvements in 2023 and 2024 are positive signs, indicating efforts to optimize inventory levels. Continued monitoring and potential adjustments in inventory practices may be necessary to maintain a healthy balance between inventory levels and sales.
Peer comparison
Dec 31, 2024