Colgate-Palmolive Company (CL)

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		4.20	4.24	3.95	3.77	3.72	3.62	3.67	3.72	4.16	4.12	3.94	3.90	3.86	4.04	4.18	4.92	4.55	4.61	4.76	4.94
DOH	days	86.82	86.10	92.39	96.87	98.07	100.78	99.35	98.00	87.65	88.56	92.54	93.70	94.61	90.36	87.28	74.16	80.24	79.12	76.73	73.86

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.20
= 86.82

The days of inventory on hand (DOH) for Colgate-Palmolive Co. have shown a fluctuating trend over the past eight quarters. In Q4 2023, the company had 86.82 days of inventory on hand, slightly higher than the DOH in Q3 2023 of 86.10 days. However, it is noted that the DOH has decreased compared to the peak of 100.78 days in Q3 2022.

This trend indicates that Colgate-Palmolive has been managing its inventory levels more efficiently in recent quarters, as lower DOH values suggest faster inventory turnover. The decreasing trend in DOH can be considered a positive indicator, as it implies that the company is holding less excess inventory, which can tie up capital and increase storage costs.

Overall, a decreasing trend in days of inventory on hand reflects improved inventory management practices and a more agile supply chain, which can lead to better working capital management and increased profitability for Colgate-Palmolive Co.