PepsiCo Inc (PEP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		7.87	7.85	7.77	8.53	7.62
DOH	days	46.39	46.49	46.97	42.80	47.89

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.87
= 46.39

The days of inventory on hand (DOH) for PepsiCo Inc over the past five years have shown a slight decrease from 47.89 days as of December 31, 2020, to 42.80 days as of December 31, 2021. Subsequently, there was a marginal increase to 46.97 days as of December 31, 2022, followed by a slight decrease to 46.49 days as of December 31, 2023. The DOH remained relatively consistent at 46.39 days as of December 31, 2024.

Overall, PepsiCo Inc has managed its inventory levels efficiently over the past five years, with fluctuations in the DOH reflecting a balanced approach to managing inventory relative to sales and production activities. A lower DOH indicates that PepsiCo is turning over its inventory more quickly, whereas a higher DOH suggests slower inventory turnover. It is important for the company to strike a balance to ensure optimal inventory management and cost control.