Philip Morris International Inc (PM)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.38 | 1.48 | 1.42 | 1.20 | 1.26 | 1.75 | 1.62 | 1.37 | 1.33 | 1.37 | 1.27 | 1.21 | 1.15 | 1.42 | 1.31 | 1.35 | 1.33 | 1.45 | 1.50 | 3.10 | |
| DOH | days | 264.05 | 247.20 | 257.72 | 305.34 | 290.13 | 208.28 | 225.76 | 266.87 | 274.21 | 265.81 | 287.33 | 301.16 | 318.19 | 257.60 | 278.18 | 270.61 | 274.49 | 251.10 | 243.36 | 117.70 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.38
= 264.05
Philip Morris International Inc's days of inventory on hand (DOH) has fluctuated over the past eight quarters. The company's DOH ranged from a low of 237.39 days in Q3 2022 to a high of 330.45 days in Q1 2023. This indicates variability in the company's inventory management efficiency.
In general, a higher DOH suggests that the company is holding onto inventory for a longer period before it is sold, which may signify slower inventory turnover. Conversely, a lower DOH indicates that the company is selling its inventory more quickly.
It is important for Philip Morris International Inc to monitor its DOH closely to ensure that inventory levels are balanced effectively. High DOH levels can tie up capital and increase storage costs, while low DOH levels may result in stockouts and lost sales opportunities. The company should aim to strike a balance between maintaining adequate inventory levels to meet customer demand and minimizing carrying costs.
Overall, a detailed analysis of the factors impacting inventory management, such as production efficiency, supply chain disruptions, and changes in customer demand, should be conducted to optimize inventory levels and enhance operational efficiency.
Peer comparison
Dec 31, 2023
See also:
Philip Morris International Inc Average Inventory Processing Period (Quarterly Data)