Procter & Gamble Company (PG)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		9.48	9.12	9.09	9.82	10.26
DOH	days	38.51	40.01	40.15	37.15	35.59

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.48
= 38.51

The days of inventory on hand (DOH) for Procter & Gamble Company have exhibited some variability over the past five years. The trend indicates a gradual increase in the DOH metric from 35.59 days in 2020 to 38.51 days in 2024. This suggests that, on average, the company held inventory for a slightly longer period before selling it to customers.

A higher DOH can indicate potential inefficiencies in inventory management, such as overstocking or slower inventory turnover, which may tie up working capital and increase holding costs. However, it can also imply a cautious approach to managing inventory levels to ensure product availability and customer satisfaction.

It would be beneficial for Procter & Gamble to further analyze the reasons behind the increasing trend in DOH and assess whether adjustments to inventory management practices are necessary to optimize working capital and operational efficiency.