Hershey Co (HSY)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.71 | 4.60 | 5.05 | 4.98 | 4.61 | |
| DOH | days | 77.57 | 79.37 | 72.32 | 73.29 | 79.11 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.71
= 77.57
The days of inventory on hand (DOH) for Hershey Co have shown a slight decrease from 79.11 days as of December 31, 2020, to 73.29 days as of December 31, 2021. This decreasing trend continued as the DOH further decreased to 72.32 days by December 31, 2022. However, there was a slight uptick in the DOH to 79.37 days by December 31, 2023, followed by a decrease to 77.57 days by December 31, 2024.
Overall, Hershey Co's DOH indicates the number of days it takes for the company to turn its inventory into sales. The decreasing trend in DOH from 2020 to 2022 suggests an improvement in inventory management efficiency, allowing the company to sell its products more quickly. However, the slight increase in DOH in 2023 may indicate a buildup of inventory or changes in the company's sales patterns. The subsequent decrease in 2024 is a positive sign as it shows a return to improved efficiency in managing inventory levels. Further analysis of the company's sales, production processes, and market demand can provide insights into the factors driving these changes in the days of inventory on hand.
Peer comparison
Dec 31, 2024