Perrigo Company PLC (PRGO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.61 | 2.60 | 2.67 | 3.07 | 3.17 | |
| DOH | days | 139.97 | 140.13 | 136.78 | 119.05 | 115.23 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.61
= 139.97
Perrigo Company plc's Days of Inventory on Hand (DOH) has shown a slight fluctuation over the past five years. The trend indicates an increasing level of inventory relative to sales volume. In 2023, the DOH stood at 139.97 days, slightly lower compared to the prior year at 140.13 days. This suggests that Perrigo Company plc is holding onto its inventory for an average of approximately 140 days before it is sold.
The upward trend in DOH from 2019 to 2023 may indicate potential inefficiencies in inventory management. A higher DOH can tie up working capital and increase carrying costs for the company. Perrigo Company plc may benefit from implementing better inventory control measures to optimize its inventory turnover and enhance overall operational efficiency. Further analysis in conjunction with other financial ratios and industry benchmarks would provide a more comprehensive view of Perrigo Company plc's inventory management performance.
Peer comparison
Dec 31, 2023