Campbell Soup Company Common Stock (CPB)

Days of inventory on hand (DOH)

		Jul 28, 2024	Jul 30, 2023	Jul 31, 2022	Aug 1, 2021	Aug 2, 2020
Inventory turnover		6.17	6.16	5.88	7.36	6.54
DOH	days	59.11	59.26	62.08	49.61	55.85

July 28, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.17
= 59.11

The days of inventory on hand (DOH) for Campbell Soup Company Common Stock have shown a fluctuating trend over the past five years. In the most recent fiscal year ending on July 28, 2024, the DOH stood at 59.11 days, slightly lower than the previous year's 59.26 days. This indicates that the company held inventory for approximately 59 days before selling it, on average.

Comparing the DOH figures further back, we observe that the DOH was highest at 62.08 days on July 31, 2022, and lowest at 49.61 days on August 1, 2021. The DOH then increased to 55.85 days on August 2, 2020. These fluctuations suggest that there may have been changes in inventory management efficiency or market demand during these periods.

A high DOH value may imply that the company is holding excess inventory, which can tie up capital and increase storage costs. Conversely, a low DOH value may suggest inventory shortages or difficulties in meeting customer demand. Therefore, Campbell Soup Company could benefit from further analysis to understand the factors driving these changes in inventory holding periods and take appropriate actions to optimize its inventory management strategies.