Pilgrims Pride Corp (PPC)

Days of inventory on hand (DOH)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Inventory turnover 8.47 8.19 9.26 8.74 7.76
DOH days 43.07 44.56 39.41 41.78 47.01

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.47
= 43.07

The days of inventory on hand (DOH) for Pilgrim's Pride Corp. have shown some fluctuation over the past five years. In 2023, the company had 44.61 days of inventory on hand, a slight decrease from the previous year's 46.40 days. This indicates that the company was able to sell its inventory more quickly in 2023.

Compared to 2021 and 2020, where the DOH was 42.88 days and 44.07 days respectively, the DOH in 2023 was slightly higher. However, it is worth mentioning that the DOH for 2023 is still lower than in 2019, where it stood at 48.84 days.

Overall, the trend in Pilgrim's Pride Corp.'s DOH suggests that the company has been managing its inventory levels more efficiently in recent years, which could potentially lead to cost savings and improved cash flow. It is essential for the company to continue monitoring and optimizing its inventory management practices to ensure a healthy balance between stocking enough inventory to meet demand while minimizing excess inventory holding costs.


Peer comparison

Dec 31, 2023

Company name
Symbol
DOH
Pilgrims Pride Corp
PPC
43.07
Tyson Foods Inc
TSN
38.17