Kenvue Inc. (KVUE)
Days of inventory on hand (DOH)
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
---|---|---|---|---|---|---|
Inventory turnover | 8.73 | 5.97 | 5.87 | 5.48 | 4.66 | |
DOH | days | 41.81 | 61.15 | 62.21 | 66.58 | 78.40 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.73
= 41.81
The days of inventory on hand (DOH) for Kenvue Inc. have shown a decreasing trend over the past year, indicating an improvement in inventory management efficiency. As of December 31, 2023, the company had an inventory turnover period of 78.40 days, which has steadily declined to 41.81 days by December 31, 2024.
This suggests that Kenvue Inc. has been able to reduce the amount of time it takes to sell its inventory, which can lead to lower holding costs and potentially higher profit margins. A lower DOH also implies that the company is better equipped to adapt to changes in consumer demand and market conditions.
Overall, the declining trend in days of inventory on hand for Kenvue Inc. reflects positively on the company's operational effectiveness and its ability to efficiently manage its inventory levels.
Peer comparison
Dec 31, 2024