Cencora Inc. (COR)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 14.51 | 14.80 | 13.47 | 14.67 | 15.77 | |
| DOH | days | 25.16 | 24.66 | 27.09 | 24.88 | 23.14 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.51
= 25.16
To analyze Cencora Inc.'s days of inventory on hand (DOH), we observe a consistent trend over the past three years. In 2021, the DOH was 27.09 days, which decreased to 24.66 days in 2022 and then increased slightly to 25.16 days in 2023. The decreasing trend from 2021 to 2022 may indicate an improvement in inventory management efficiency, as the company took fewer days to sell its inventory. However, the slight increase in 2023 suggests a potential slowdown in inventory turnover.
The DOH ratio provides insights into the company's inventory management. A lower DOH indicates a faster inventory turnover, which can free up working capital and reduce carrying costs. Conversely, a higher DOH may imply excess inventory or potential obsolescence.
It's important to monitor the DOH in conjunction with sales trends and industry benchmarks to understand how efficiently the company is managing its inventory levels. Further analysis of Cencora Inc.'s operations and market conditions would be helpful in interpreting the significance of these DOH fluctuations.
Peer comparison
Sep 30, 2023