Hasbro Inc (HAS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.34 | 4.61 | 5.19 | 6.05 | 6.43 | 3.51 | 3.13 | 3.27 | 3.55 | 3.05 | 3.04 | 3.99 | 4.61 | 4.43 | 4.84 | 5.39 | 5.79 | 4.16 | 3.92 | 5.13 | |
| DOH | days | 68.38 | 79.13 | 70.33 | 60.30 | 56.78 | 104.09 | 116.74 | 111.47 | 102.72 | 119.58 | 120.06 | 91.42 | 79.09 | 82.33 | 75.41 | 67.75 | 63.09 | 87.77 | 93.01 | 71.21 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.34
= 68.38
Days of Inventory on Hand (DOH) is a crucial liquidity ratio that measures the average number of days a company holds inventory before selling it. A lower DOH indicates more efficient inventory management and quicker inventory turnover, while a higher DOH suggests excess inventory or potential liquidity issues.
Analyzing Hasbro Inc's DOH over the past few years, we observe fluctuations in the metric. From December 31, 2020, to June 30, 2021, the DOH increased steadily from 63.09 days to 75.41 days, indicating a slowdown in inventory turnover. This rise could be due to various factors such as changes in demand patterns, supply chain disruptions, or production issues.
The trend continued in the subsequent quarters, with the DOH peaking at 120.06 days on June 30, 2022, before gradually declining. This sharp increase followed by a decrease could signify inventory management challenges or inventory build-up in anticipation of future demand.
However, a notable improvement is seen in the later quarters of 2023 and early 2024, where the DOH decreased significantly, reaching a low of 56.78 days on December 31, 2023. This reduction suggests that Hasbro Inc effectively managed its inventory levels and improved its inventory turnover efficiency during this period.
Overall, while Hasbro Inc experienced fluctuations in its DOH over the analyzed period, the company displayed the ability to adapt its inventory management strategies to optimize its working capital and operational efficiency. Long-term trends in DOH should be further monitored to assess the company's ongoing inventory management performance and its impact on financial health.