Hershey Co (HSY)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.20 | 5.99 | 5.74 | 6.67 | 7.03 | 6.80 | 6.33 | 7.02 | 7.11 | 6.20 | 5.36 | 5.54 | 4.61 | 4.57 | 4.44 | 5.30 | 5.35 | 4.39 | 4.46 | 5.49 | |
| DOH | days | 58.90 | 60.98 | 63.60 | 54.73 | 51.92 | 53.66 | 57.69 | 51.97 | 51.35 | 58.88 | 68.16 | 65.89 | 79.11 | 79.85 | 82.29 | 68.87 | 68.19 | 83.20 | 81.77 | 66.52 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.20
= 58.90
The Days of Inventory on Hand (DOH) for Hershey Company have shown some fluctuations over the past eight quarters. In Q4 2023, the DOH was 79.37 days, indicating that the company held its inventory for approximately 79 days before selling it. This was slightly lower than the previous quarter at 80.11 days.
Looking back at the data, the DOH has varied between a low of 70.57 days in Q1 2023 and a high of 83.03 days in Q2 2023. This variability suggests that Hershey Company has been managing its inventory levels in response to changes in market demand or production efficiency.
On average, the company has maintained a DOH of around 75-80 days over the past two years, with some quarters deviating from this range. This indicates that Hershey Company typically holds enough inventory to meet customer demand without excess stockpiling.
It would be beneficial to monitor the trend of DOH over time to assess the effectiveness of Hershey Company's inventory management practices and their impact on the company's financial performance.
Peer comparison
Dec 31, 2023
See also:
Hershey Co Average Inventory Processing Period (Quarterly Data)