PepsiCo Inc (PEP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 7, 2024	Jun 15, 2024	Mar 23, 2024	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
Inventory turnover		7.87	7.38	7.12	7.57	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
DOH	days	46.39	49.45	51.24	48.24	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

December 31, 2024 calculation

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

Days of inventory on hand (DOH) is a financial ratio that measures the average number of days a company holds onto its inventory before it is sold. For PepsiCo Inc, the trend in DOH over the past few years has shown some fluctuations.

In March 2020, PepsiCo had 45.54 days of inventory on hand, which increased to 52.04 days by June 2020. The DOH then decreased to 47.89 days by December 2020 but rose again to 51.42 days by March 2021. Subsequently, the DOH continued to increase to 53.53 days in June 2021 and then decreased to 42.80 days by December 2021.

The trend continued with some fluctuations in the following periods, with DOH increasing to 50.29 days in June 2022 but decreasing to 46.39 days by December 2024. Overall, PepsiCo's DOH has shown variability but has remained within a relatively stable range between 42.80 days and 53.53 days over the analyzed periods.

A low DOH ratio indicates efficient inventory management, as it implies that inventory is being sold quickly. Conversely, a high DOH ratio may suggest slow-moving inventory or potential issues with demand forecasting or production scheduling. It is crucial for PepsiCo to monitor its DOH closely to ensure optimal inventory levels and operational efficiency.