Packaging Corp of America (PKG)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.87 | 6.08 | 6.12 | 6.15 | 6.02 | 6.19 | 6.24 | 6.31 | 6.54 | 6.43 | 6.58 | 6.44 | 6.49 | 6.48 | 6.73 | 6.69 | 6.71 | 6.74 | 6.27 | 6.61 | |
| DOH | days | 62.21 | 60.08 | 59.67 | 59.39 | 60.59 | 58.97 | 58.53 | 57.87 | 55.85 | 56.81 | 55.51 | 56.72 | 56.24 | 56.31 | 54.27 | 54.57 | 54.38 | 54.12 | 58.18 | 55.24 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.87
= 62.21
Packaging Corp of America's Days of Inventory on Hand (DOH) has shown some fluctuations over the past few years. The DOH ranged from a low of 54.12 days on September 30, 2020, to a high of 62.21 days on December 31, 2024. The average DOH during this period was approximately 57.22 days.
The upward trend in DOH from 2020 to 2024 indicates that Packaging Corp of America may be carrying more inventory on hand in relation to its sales. This can tie up working capital and increase holding costs. A higher DOH may also suggest inefficiencies in inventory management or challenges in matching production with demand.
It is important for management to closely monitor and optimize inventory levels to ensure that they are not excessively high, causing unnecessary costs, or too low, leading to stockouts and potential lost sales. By analyzing the DOH over time, the company can identify areas for improvement in inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024