PepsiCo Inc (PEP)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | |
| DOH | days | 46.49 | 46.97 | 42.80 | 47.89 | 40.43 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.85
= 46.49
The days of inventory on hand (DOH) for PepsiCo Inc have fluctuated over the past five years. In 2023, the DOH was 46.49 days, slightly lower than the previous year's 46.97 days. This implies that PepsiCo held its inventory for around 46 to 47 days before selling it.
Compared to 2021, the DOH increased in 2022, indicating that PepsiCo may have had its inventory on hand for a longer period before turning it into revenue. However, in 2021, the DOH was lower at 42.80 days, suggesting more efficient inventory management.
In 2020, PepsiCo's DOH was 47.89 days, higher than in 2019 at 40.43 days. This increase may indicate possible challenges in managing inventory levels effectively, which could tie up capital and lead to higher holding costs.
Overall, fluctuations in PepsiCo's DOH over the years highlight the importance of monitoring and optimizing inventory management practices to ensure efficient operations and cost-effectiveness.
Peer comparison
Dec 31, 2023