Coca-Cola Consolidated Inc. (COKE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 12.55 | 12.60 | 11.29 | 11.92 | 14.34 | |
| DOH | days | 29.08 | 28.98 | 32.34 | 30.63 | 25.44 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.55
= 29.08
The days of inventory on hand (DOH) for Coca-Cola Consolidated Inc. has shown a general trend of increase over the past five years, from 25.44 days as of December 31, 2020, to 29.08 days as of December 31, 2024. This indicates that, on average, the company held its inventory for a longer period before selling it.
The rise in DOH could suggest several things. It may be due to inefficiencies in inventory management, such as overstocking or slower inventory turnover. This could tie up capital in inventory, potentially leading to increased holding costs or risks of obsolescence.
However, a higher DOH can also be beneficial in certain circumstances. For instance, it could indicate improved control over inventory levels, ensuring product availability to meet customer demand without the need for rush orders or stockouts.
It is essential for the company to carefully monitor and manage its inventory levels to strike a balance between having enough stock to meet demand and avoiding unnecessary holding costs. Further analysis, considering industry benchmarks and additional operational data, would provide deeper insights into the effectiveness of Coca-Cola Consolidated Inc.'s inventory management practices.
Peer comparison
Dec 31, 2024