The Coca-Cola Company (KO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.88	4.19	4.25	4.50	4.11
DOH	days	94.18	87.19	85.84	81.14	88.74

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.88
= 94.18

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds onto its inventory before it is sold. For The Coca-Cola Company, the trend in DOH over the past five years indicates the efficiency of its inventory management.

In 2020, the DOH was 88.74 days, suggesting that on average, Coca-Cola held its inventory for around 88 days before it was sold. Over the next few years, there was a slight improvement in efficiency as the DOH decreased to 81.14 days in 2021 and further to 85.84 days in 2022. However, in 2023 and 2024, there was a slight increase back to 87.19 days and 94.18 days, respectively.

A lower DOH is generally preferred as it indicates that the company is managing its inventory more effectively, reducing the risk of holding excess or obsolete inventory. The variations in DOH for Coca-Cola over the years may be influenced by factors such as changes in demand, production efficiencies, inventory management practices, and supply chain disruptions.

Overall, The Coca-Cola Company has shown some improvements in its inventory management efficiency over the years, although there were fluctuations in DOH in the most recent years. Continuing to monitor and optimize inventory levels can help the company maintain a balance between meeting customer demand and controlling holding costs.