Kraft Heinz Co (KHC)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.39	6.58	8.90	9.94	8.81
DOH	days	57.16	55.48	41.01	36.71	41.44

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.39
= 57.16

The Days of Inventory on Hand (DOH) for Kraft Heinz Co have shown a fluctuating trend over the past five years, indicating the company's efficiency in managing its inventory levels.

In 2019, the DOH was at 41.44 days, which decreased to 36.71 days by the end of 2020, suggesting that the company was able to sell its inventory faster. However, in 2021, there was a significant increase in DOH to 41.01 days, indicating a slowdown in inventory turnover, possibly due to various factors such as changes in consumer demand or supply chain disruptions.

The trend continued in 2022, with DOH slightly rising to 55.48 days, reflecting a further slowdown in inventory turnover. The most recent data for 2023 shows an increase to 57.16 days, indicating that Kraft Heinz Co is holding inventory for a longer period before selling it.

Overall, the increasing trend in DOH over the past two years could signify potential concerns regarding inventory management efficiency. It is essential for the company to closely monitor and optimize its inventory levels to avoid potential obsolescence, storage costs, and tying up of capital in excess inventory.