Pilgrims Pride Corp (PPC)
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 | 8.46 | 8.35 | 8.12 | 8.18 | 8.18 | 8.31 | 8.51 | 8.96 | 9.25 | 8.78 | 8.46 | 8.32 | 8.73 | 8.85 | 8.44 | 8.17 | 7.76 | 8.23 | 8.77 | 9.00 | |
| DOH | days | 43.13 | 43.73 | 44.93 | 44.61 | 44.60 | 43.91 | 42.88 | 40.75 | 39.44 | 41.56 | 43.14 | 43.86 | 41.83 | 41.25 | 43.26 | 44.67 | 47.06 | 44.33 | 41.62 | 40.55 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.46
= 43.13
The days of inventory on hand (DOH) for Pilgrim`s Pride Corp. over the past eight quarters have shown some fluctuations. The DOH ranged from a low of 44.25 days in Q1 2022 to a high of 46.64 days in Q2 2023. Overall, the trend has been relatively stable with slight variations quarter over quarter.
A higher DOH value suggests that the company is taking longer to sell its inventory, which may imply inefficiencies in inventory management. Conversely, a lower DOH value indicates a faster turnover of inventory, which can be a positive indicator of effective inventory management.
In the case of Pilgrim`s Pride Corp., the DOH has generally remained within a narrow range, indicating a consistent level of inventory turnover. However, management should continue monitoring this ratio to ensure that inventory levels are optimized to minimize carrying costs while meeting demand efficiently.
Peer comparison
Dec 31, 2023