Kraft Heinz Co (KHC)

Days of inventory on hand (DOH)

		Dec 31, 2024	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
Inventory turnover		8.29	6.64	6.83	6.41	6.39	6.23	6.03	6.05	6.58	5.38	5.27	5.47	6.40	7.62	7.84	10.27	9.94	10.78	9.96	8.30
DOH	days	44.04	54.98	53.47	56.95	57.16	58.62	60.57	60.34	55.48	67.85	69.28	66.72	57.04	47.87	46.58	35.53	36.71	33.87	36.66	43.99

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.29
= 44.04

The days of inventory on hand (DOH) for Kraft Heinz Co has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The DOH decreased from 43.99 days on March 31, 2020, to 33.87 days on September 30, 2020, indicating an improvement in inventory management efficiency. However, the DOH increased again to 46.58 days on June 30, 2021, and continued to rise reaching 69.28 days on June 30, 2022.

Subsequently, there was a decline in DOH to 53.47 days on June 30, 2024, followed by a further decrease to 44.04 days on December 31, 2024. This downward trend suggests that the company may have managed its inventory more effectively during the latter part of the period under review.

The variation in DOH could be due to changes in demand patterns, supply chain disruptions, or inventory management policies within the company. It is important for Kraft Heinz Co to monitor its DOH closely to ensure optimal levels of inventory that strike a balance between meeting customer demand and minimizing carrying costs.