J & J Snack Foods Corp (JJSF)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.45 | 7.25 | 6.84 | 7.42 | 7.48 | 7.10 | 6.84 | 6.54 | 6.45 | 6.31 | 6.58 | 7.69 | 7.87 | 8.15 | 7.72 | 7.88 | 8.19 | 7.60 | 7.52 | 7.59 | |
| DOH | days | 49.01 | 50.37 | 53.39 | 49.18 | 48.80 | 51.44 | 53.35 | 55.79 | 56.61 | 57.87 | 55.48 | 47.45 | 46.41 | 44.79 | 47.26 | 46.29 | 44.57 | 48.01 | 48.55 | 48.06 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.45
= 49.01
The Days of Inventory on Hand (DOH) ratio for J & J Snack Foods Corp has shown some variability over the past few years. The company's inventory management efficiency can be evaluated by analyzing this ratio.
Observing the trend in the DOH ratio from December 2019 to September 2024, there is a general fluctuation in the number of days it takes for the company to sell its inventory. The DOH ratio has ranged from a low of 44.57 days in March 2021 to a high of 57.87 days in June 2022.
A higher DOH value implies that inventory is staying on the shelves for a longer period before being sold, which may tie up working capital and increase storage costs. Conversely, a lower DOH value suggests that inventory turnover is faster, reflecting efficient inventory management.
The downward trend in DOH from June 2022 to December 2022 and the subsequent increase until March 2024 may indicate some challenges in inventory management during this period. The improvement seen from March 2024 to June 2024 could suggest that the company made efforts to streamline its inventory processes.
Overall, monitoring the Days of Inventory on Hand ratio for J & J Snack Foods Corp provides valuable insights into its inventory management efficiency and helps in assessing the company's ability to effectively control and sell its inventory.