WK Kellogg Co (KLG)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
Inventory turnover 7.36 7.70 7.20
DOH days 49.57 47.39 50.71

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.36
= 49.57

WK Kellogg Co's days of inventory on hand (DOH) for the periods ending June 30, 2024, September 30, 2024, and December 31, 2024, were 50.71 days, 47.39 days, and 49.57 days respectively.

A lower DOH indicates that the company is able to sell its inventory faster, which is generally favorable as it reduces the risk of obsolescence and carrying costs. Over the analyzed period, WK Kellogg Co managed to improve its DOH from 50.71 days to 47.39 days before slightly increasing to 49.57 days by the end of the year. This reduction in DOH suggests better inventory management efficiency, allowing the company to convert its inventory into sales more quickly.

It is important to keep monitoring the DOH trend to ensure that the company maintains an optimal level of inventory to meet demand while avoiding excess stock that could tie up capital.