Hershey Co (HSY)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.65 | 7.03 | 7.08 | 4.61 | 5.35 | |
| DOH | days | 54.91 | 51.92 | 51.54 | 79.11 | 68.19 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.65
= 54.91
The days of inventory on hand (DOH) for Hershey Company has exhibited fluctuating trends over the past five years. In 2023, the DOH increased to 79.37 days from the previous year's 72.32 days, indicating that Hershey held inventory for approximately 7 more days in 2023 compared to 2022. This rise may suggest a slower turnover of inventory or potential inefficiencies in managing inventory levels.
Comparing the DOH in 2023 to 2021 and 2020, there was a slight increase from 73.29 days in 2021 and a decrease from 79.11 days in 2020. This implies that Hershey held inventory for a longer period in 2023 compared to 2021 but a shorter period compared to 2020. The upward trend in 2023 from 2021 may indicate challenges in managing inventory levels efficiently, while the decrease from 2020 suggests some improvements in inventory management.
Furthermore, the DOH in 2019 was 68.19 days, indicating that Hershey was holding inventory for a shorter period compared to 2023. This demonstrates a significant increase in inventory holding period over the past five years.
In conclusion, the fluctuation in Hershey Company's days of inventory on hand over the years suggests potential changes in inventory management practices and efficiency. It is essential for the company to monitor and optimize its inventory levels to ensure smooth operations and cost-effectiveness.
Peer comparison
Dec 31, 2023