Mondelez International Inc (MDLZ)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 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	Dec 31, 2019
Inventory turnover		5.87	5.18	5.92	6.16	5.78	5.66	5.82	5.97	5.71	6.12	6.33	6.45	5.84	5.67	6.13	6.10	5.59	5.84	6.49	6.10
DOH	days	62.13	70.45	61.70	59.30	63.10	64.51	62.67	61.14	63.87	59.63	57.63	56.59	62.49	64.38	59.55	59.88	65.35	62.49	56.24	59.83

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.87
= 62.13

Days of Inventory on Hand (DOH) is a key financial ratio that indicates the average number of days it takes for a company to convert its inventory into sales. For Mondelez International Inc, the trend in the DOH over the period from December 31, 2019, to December 31, 2024, shows some fluctuations.

The DOH ranged from a low of 56.24 days on March 31, 2020, to a high of 70.45 days on September 30, 2024. Generally, a lower DOH is considered more favorable as it suggests that the company is efficiently managing its inventory and is able to quickly turn it into sales. Conversely, a higher DOH may indicate slower inventory turnover and potential inefficiencies in managing inventory levels.

Mondelez International's DOH showed some volatility over the period, with fluctuations between 56.24 days and 70.45 days. These fluctuations may be influenced by various factors such as seasonal demand, changes in production levels, or shifts in consumer preferences.

Overall, monitoring the DOH ratio for Mondelez International can provide insights into its inventory management effectiveness and operational efficiency, helping stakeholders assess the company's ability to manage its working capital and optimize its supply chain operations.