MGP Ingredients Inc (MGPI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.85 | 2.09 | 2.04 | 2.42 | 2.30 | |
| DOH | days | 197.02 | 174.57 | 178.78 | 150.81 | 158.41 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.85
= 197.02
The days of inventory on hand (DOH) for MGP Ingredients, Inc. have fluctuated over the past five years. The company's DOH was 238.06 days at the end of 2023, showing an increase compared to the previous year's 199.88 days. This suggests that MGP had excess inventory relative to its sales volume at the end of 2023.
In 2022, the DOH was 199.88 days, which was higher than the 209.86 days recorded in 2021. This decrease indicates that the company managed its inventory more efficiently in 2022 compared to 2021.
In 2020 and 2019, MGP had DOH of 173.46 days and 174.62 days, respectively. These lower numbers suggest that the company was able to turn over its inventory more quickly in those years.
Overall, the trend in MGP's DOH indicates fluctuations in inventory management efficiency over the past five years. The company should continue to monitor and optimize its inventory levels to ensure proper balance between holding enough inventory to meet demand and avoiding excess carrying costs.