Middleby Corp (MIDD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.71 | 3.23 | 3.35 | 4.18 | 4.31 | |
| DOH | days | 98.25 | 113.05 | 108.88 | 87.25 | 84.69 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.71
= 98.25
Based on the data provided, Middleby Corp's days of inventory on hand (DOH) has shown some variability over the past five years. In 2023, the company had 98.25 days of inventory on hand, which decreased from 113.05 days in 2022. This suggests that in 2023, Middleby Corp was able to turn its inventory into sales more efficiently compared to the previous year.
Comparing to 2021, where the DOH was 108.88 days, the company has managed to reduce the number of days it takes to sell its inventory over the years. The trend of decreasing DOH from 2021 to 2023 indicates that Middleby Corp has been more effective in managing its inventory levels and aligning them with sales demand, leading to improved operational efficiency.
Furthermore, when compared to 2020 and 2019, where the DOH was 87.25 days and 84.69 days respectively, there has been a slight increase in the days of inventory on hand. This upward trend may indicate that Middleby Corp's inventory management could have become less efficient during these years.
Overall, the analysis of Middleby Corp's days of inventory on hand suggests improvements in inventory management efficiency from 2021 to 2023, with a slight setback in the previous years. Further monitoring and analysis of inventory turnover ratios would be beneficial to assess the company's ongoing performance in this area.
Peer comparison
Dec 31, 2023