McDonald’s Corporation (MCD)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		90.44	83.90	76.37	78.21	74.66
DOH	days	4.04	4.35	4.78	4.67	4.89

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 90.44
= 4.04

Days of Inventory on Hand (DOH) is a crucial financial ratio that measures the number of days a company holds inventory before it is sold. It is calculated as Average Inventory divided by Cost of Goods Sold, multiplied by the number of days in the period. Unfortunately, the lack of specific data for McDonald's Corp's DOH from 2019 to 2023 limits a direct comparison and trend analysis. However, a decreasing trend in DOH would indicate that the company is managing its inventory more efficiently, resulting in potentially lower storage costs and reduced risk of obsolete inventory. Conversely, an increasing trend could suggest issues with inventory management, such as overstocking or slowing sales. Further data or context would be required to provide a more insightful analysis of McDonald's Corp's inventory management performance.