Kellanova (K)

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		7.11	5.50	5.35	5.73	8.31	7.15	7.69	8.02	8.91	8.43	7.82	7.50	7.04	7.05	7.35	7.61	7.50	7.74	7.46	6.89
DOH	days	51.33	66.36	68.17	63.65	43.94	51.05	47.49	45.53	40.97	43.30	46.69	48.69	51.83	51.80	49.65	47.95	48.66	47.15	48.90	52.98

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.11
= 51.33

The days of inventory on hand (DOH) for Kellanova over the past few quarters have shown some fluctuations. The average DOH for the latest quarter (Dec 31, 2023) was 51.33 days, which indicates that, on average, the company holds inventory for approximately 51 days before it is sold.

Comparing this to historical data, we observe a gradual increase in DOH from the prior quarter (Sep 30, 2023) to the current quarter, suggesting that Kellanova may be holding inventory for a slightly longer period. However, the DOH is still lower than some previous quarters, such as Jun 30, 2023 and Mar 31, 2023, indicating that the company has improved its inventory management efficiency since then.

It is essential for Kellanova to strike a balance between having enough inventory to meet customer demand and minimizing holding costs associated with excess inventory. Monitoring the DOH over time can help the company assess its inventory management practices and make adjustments as needed to optimize cash flow and profitability.