Darling Ingredients Inc (DAR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.20 | 8.75 | 9.20 | 8.51 | 9.02 | |
| DOH | days | 44.52 | 41.70 | 39.67 | 42.88 | 40.47 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.20
= 44.52
The days of inventory on hand (DOH) for Darling Ingredients Inc have shown a consistent trend over the past five years. The DOH has increased from 40.47 days in 2019 to 44.52 days in 2023. This indicates that the company is taking longer to sell its inventory, which could potentially tie up more capital in inventory holdings. However, it is important to note that the DOH values are relatively stable and within a reasonable range, suggesting that Darling Ingredients Inc has been effectively managing its inventory levels to meet demand while avoiding excessive stockpiling. Further analysis of industry benchmarks and internal policies may provide additional insights into the efficiency of the company's inventory management practices.
Peer comparison
Dec 31, 2023