Pilgrims Pride Corp (PPC)
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 | 9.19 | 9.35 | 9.26 | 9.03 | 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 | |
| DOH | days | 39.72 | 39.04 | 39.41 | 40.42 | 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 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.19
= 39.72
Days of Inventory on Hand (DOH) is a financial ratio that measures the number of days a company takes to sell its average inventory. A lower DOH indicates that the company is selling its inventory more quickly, which is generally preferred as it can reduce carrying costs and minimize the risk of obsolescence.
In the case of Pilgrims Pride Corp, the trend of the DOH ratio from March 31, 2020, to December 31, 2024, shows some fluctuations. The DOH ranged from a low of 39.04 days on September 30, 2024, to a high of 44.93 days on June 30, 2023.
The company's inventory management improved towards the end of the period, with a decreasing trend in the DOH ratio from 44.93 days on June 30, 2023, to 39.72 days on December 31, 2024. This indicates that the company was able to sell its inventory more efficiently, possibly through better demand forecasting, production planning, or inventory control initiatives.
Overall, a decreasing trend in the DOH ratio suggests that Pilgrims Pride Corp was able to streamline its inventory management practices, leading to improved liquidity, lower carrying costs, and potentially higher profitability due to reduced inventory holding periods. However, it is essential to monitor this ratio continuously to ensure optimal inventory turnover and efficient use of resources.
Peer comparison
Dec 31, 2024