PepsiCo Inc (PEP)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 9, 2023	Jun 17, 2023	Mar 31, 2023	Dec 31, 2022	Sep 3, 2022	Jun 11, 2022	Mar 19, 2022	Dec 31, 2021	Sep 4, 2021	Jun 12, 2021	Mar 20, 2021	Dec 31, 2020	Sep 5, 2020	Jun 13, 2020	Mar 21, 2020	Dec 31, 2019	Sep 7, 2019	Mar 23, 2019	Dec 31, 2018
Inventory turnover		7.85	7.59	7.01	7.22	7.77	7.83	7.26	7.95	8.53	8.11	6.82	7.10	7.62	7.43	7.01	8.02	9.49	8.14	8.28	9.39
DOH	days	46.49	48.07	52.08	50.56	46.97	46.63	50.29	45.94	42.80	45.03	53.53	51.42	47.89	49.13	52.04	45.54	38.48	44.85	44.10	38.86

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.85
= 46.49

Days of Inventory on Hand (DOH) is a key metric that measures how efficiently a company manages its inventory. A lower DOH value indicates that a company sells its inventory quickly, while a higher value suggests slower inventory turnover.

Based on the data provided for PepsiCo Inc over the past few years, we can observe some fluctuations in the DOH metric. The trend shows some variability but generally indicates that PepsiCo has been able to manage its inventory efficiently.

The average DOH for PepsiCo over the period is approximately 47.04 days. This suggests that, on average, PepsiCo holds about 47 days' worth of inventory before it is sold.

It is important to note that a high DOH value could imply excess inventory levels, leading to increased storage costs and possible obsolescence risk. Conversely, a low DOH value may indicate potential stockouts or supply chain disruptions.

Overall, PepsiCo's DOH demonstrates a relatively stable performance over the analyzed periods, indicating effective inventory management practices. Further analysis and comparison with industry benchmarks can provide more insight into PepsiCo's inventory efficiency relative to its peers.