Colgate-Palmolive Company (CL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		4.00	3.91	4.19	4.23	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
DOH	days	91.34	93.39	87.08	86.26	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.00
= 91.34

The days of inventory on hand (DOH) for Colgate-Palmolive Company has shown some fluctuations over the periods provided.

From March 31, 2020, to December 31, 2022, the DOH increased steadily from 74.16 days to 98.07 days. This rise indicates that the company was holding inventory for a longer period, which may suggest inefficiencies in inventory management or a slowdown in sales.

However, from March 31, 2023, to December 31, 2024, the DOH fluctuated within a narrower range, between 86.10 days and 93.39 days. This may indicate improved inventory management practices by the company during this period.

Overall, monitoring the DOH can provide insights into how effectively Colgate-Palmolive is managing its inventory levels. It is essential for the company to strike a balance between holding enough inventory to meet demand and avoiding excessive inventory holding costs.