Keurig Dr Pepper Inc (KDP)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 10.63 | 9.37 | 11.75 | 12.91 | 14.38 | |
| DOH | days | 34.33 | 38.95 | 31.07 | 28.28 | 25.38 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.63
= 34.33
Keurig Dr Pepper Inc's days of inventory on hand (DOH) have exhibited some variability over the past five years. The DOH was 61.90 days as of December 31, 2023, a decrease from 71.22 days in the previous year. This implies that the company held its inventory for a shorter period in 2023 compared to 2022. The trend indicates improved inventory management efficiency, as it indicates that the company is selling its inventory at a faster rate or managing its inventory levels more effectively. However, it is important to note that inventory management is a delicate balance between stocking enough inventory to meet demand while avoiding excess which can tie up capital. Thus, a lower DOH may be positive but could also signify inventory shortages if taken to an extreme.
Peer comparison
Dec 31, 2023