Altria Group (MO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.40 | 5.37 | 5.85 | 6.90 | 3.23 | |
| DOH | days | 43.48 | 68.03 | 62.35 | 52.93 | 112.87 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.40
= 43.48
The days of inventory on hand (DOH) for Altria Group Inc. have shown a decreasing trend over the past five years, indicating an improvement in the company's inventory management efficiency.
In 2019, the DOH was 118.13 days, which decreased to 91.79 days in 2020, and further decreased to 61.22 days in 2021. This significant decrease suggests that Altria has been able to manage its inventory more effectively, potentially leading to lower holding costs and a more streamlined supply chain.
However, in 2022, the DOH slightly increased to 66.86 days, which could indicate a slight slowdown in inventory turnover or a change in the company's inventory management strategies. Nevertheless, the DOH remained relatively low compared to previous years.
By the end of 2023, the DOH increased again to 71.32 days, suggesting a possible increase in the average time it takes for Altria to sell its inventory. This increase may warrant further investigation to understand the factors contributing to this change and evaluate its impact on the company's financial performance and operational efficiency.
Overall, while Altria has shown improvements in inventory management efficiency over the past few years, the recent increase in DOH in 2023 highlights the importance of ongoing monitoring and optimization of inventory levels to maintain a balance between inventory investment and sales performance.
Peer comparison
Dec 31, 2023