Ingredion Incorporated (INGR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.47 | 4.08 | 5.12 | 5.31 | 5.81 | |
| DOH | days | 81.66 | 89.51 | 71.26 | 68.70 | 62.80 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.47
= 81.66
The days of inventory on hand (DOH) for Ingredion Inc have shown fluctuations over the past five years. In 2023, the company had 82.55 days of inventory on hand, a decrease from 90.34 days in 2022. This suggests that the company was able to sell its inventory at a faster rate in 2023 compared to the previous year. However, the DOH in 2023 was higher than in 2021 and 2020, indicating a potential buildup of inventory relative to sales.
In general, a lower DOH is preferred as it indicates efficient inventory management and quicker turnover of goods. On the other hand, a high DOH may suggest excess inventory levels or potential inefficiencies in the supply chain. It is important for Ingredion Inc to closely monitor its inventory levels and strive for a balance between maintaining adequate stock to meet demand and avoiding excessive holding costs.
Peer comparison
Dec 31, 2023