Hershey Co (HSY)
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 | 4.82 | 4.76 | 4.19 | 5.52 | 4.56 | 4.56 | 4.40 | 5.17 | 5.05 | 4.83 | 4.47 | 4.94 | 4.98 | 4.71 | 4.41 | 4.97 | 4.61 | 4.57 | 4.44 | 5.30 | |
| DOH | days | 75.66 | 76.63 | 87.10 | 66.13 | 80.06 | 80.11 | 83.03 | 70.57 | 72.32 | 75.49 | 81.59 | 73.87 | 73.29 | 77.53 | 82.81 | 73.39 | 79.11 | 79.85 | 82.29 | 68.87 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.82
= 75.66
The days of inventory on hand (DOH) for Hershey Co have fluctuated over the period from March 31, 2020, to December 31, 2024. The DOH metric represents how many days it takes for a company to sell its entire inventory, indicating the efficiency of inventory management.
Over the period, Hershey Co's DOH ranged from a low of 66.13 days on March 31, 2024, to a high of 87.10 days on June 30, 2024, with an average DOH of approximately 77 days. This shows some variability in the company's inventory turnover efficiency, with some quarters performing better than others.
Analyzing the trend, there seems to be periods of improvement followed by slight regressions in inventory management efficiency. For example, there was a decrease in DOH from September 30, 2022, to March 31, 2023, indicating improved inventory turnover. However, there was an increase in DOH from March 31, 2023, to June 30, 2023, signaling a potential slowdown in inventory management.
Overall, Hershey Co should continue to monitor its DOH closely to ensure optimal inventory management practices, which can impact working capital and overall financial performance. A lower DOH generally indicates better inventory management efficiency, allowing the company to minimize carrying costs and optimize cash flow.
Peer comparison
Dec 31, 2024
See also:
Hershey Co Average Inventory Processing Period (Quarterly Data)