Calavo Growers Inc (CVGW)
Days of inventory on hand (DOH)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 30.96 | 30.61 | 26.07 | 25.53 | 30.56 | |
| DOH | days | 11.79 | 11.92 | 14.00 | 14.30 | 11.94 |
October 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 30.96
= 11.79
To analyze Calavo Growers, Inc.'s days of inventory on hand (DOH) over the past five years, we observe a fluctuating trend. In 2023, the DOH increased to 15.96 days from 12.69 days in 2022, indicating that the company held its inventory for a longer period before converting it into sales. This may suggest potential inefficiencies in inventory management or slower sales turnover.
Comparing to 2021, when the DOH was 14.90 days, there was a notable increase in 2023, indicating a relative deterioration in inventory turnover efficiency. Similarly, there was a slight increase from 15.73 days in 2020 to 15.96 days in 2023.
However, it's important to note that in 2019, the DOH was relatively lower at 12.61 days, and the subsequent increases suggest a deviation from the more efficient inventory management observed in that year.
Overall, the trend in the DOH indicates a potential need for Calavo Growers, Inc. to focus on optimizing its inventory control and sales strategies to enhance efficiency and mitigate the risk of excess inventory buildup.