Middleby Corp (MIDD)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.86 | 2.67 | 2.40 | 2.46 | 3.02 | |
| DOH | days | 127.73 | 136.50 | 152.10 | 148.67 | 120.87 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.86
= 127.73
The days of inventory on hand (DOH) for Middleby Corp have shown a fluctuating trend over the past five years. The company's inventory turnover has ranged from 120.87 days as of December 31, 2020, to 127.73 days as of December 31, 2024. This indicates that, on average, Middleby Corp held its inventory for around four to five months before selling it during this period.
The upward trend in the DOH from 2020 to 2022 suggests that the company may have been experiencing challenges in efficiently managing its inventory levels or facing slower inventory turnover. However, the slight decrease in DOH in 2023 and 2024 may indicate improvements in inventory management or increased sales efficiency.
It is recommended for Middleby Corp to continue monitoring its inventory turnover and take appropriate measures to optimize its inventory levels, reduce excess stock, and improve the efficiency of inventory management processes to enhance profitability and cash flow.
Peer comparison
Dec 31, 2024