Middleby Corp (MIDD)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.46 | 3.14 | 2.97 | 2.87 | 3.23 | 3.17 | 3.20 | 3.30 | 3.35 | 3.96 | 4.22 | 4.05 | 4.18 | 4.07 | 3.82 | 4.03 | 4.31 | 4.09 | 4.11 | 4.21 | |
| DOH | days | 105.50 | 116.31 | 123.04 | 127.24 | 113.05 | 115.15 | 114.03 | 110.44 | 108.88 | 92.25 | 86.54 | 90.05 | 87.25 | 89.62 | 95.50 | 90.67 | 84.69 | 89.34 | 88.90 | 86.69 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.46
= 105.50
Days of inventory on hand (DOH) measures how many days, on average, a company holds its inventory before selling it. A higher DOH indicates that the company is taking longer to sell its inventory, potentially tying up capital and leading to higher carrying costs.
Analyzing Middleby Corp's DOH over the past few years, we can see some fluctuations in the metric. The trend shows an increase in DOH from the beginning of 2019 to the end of 2020, indicating a longer period of holding inventory. However, in 2021, there was a noticeable decrease in DOH, suggesting that the company managed its inventory more efficiently during that period.
From 2021 through 2023, there appears to be an uptrend in DOH, indicating that Middleby Corp might be taking longer to sell its inventory in recent quarters. This trend could be a cause for concern as it may imply potential inventory management challenges or slower sales, which could impact the company's profitability and cash flow.
Investors and stakeholders should closely monitor Middleby Corp's DOH and assess the reasons behind the fluctuations to understand the company's inventory management practices and overall operational efficiency. Additional analysis combined with other financial ratios and operational metrics would provide a more comprehensive view of the company's performance.
Peer comparison
Dec 31, 2023