Papa John's International Inc (PZZA)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		41.95	40.93	41.36	46.86	48.54
DOH	days	8.70	8.92	8.82	7.79	7.52

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 41.95
= 8.70

Based on the data provided, Papa John's International Inc's Days of Inventory on Hand (DOH) has shown a slight upward trend over the past five years. The DOH increased from 7.52 days as of December 31, 2020, to 8.70 days as of December 31, 2024. This indicates that, on average, Papa John's held inventory for a longer period before selling it over the specified period.

A higher DOH value can suggest potential concerns related to inventory management efficiency and liquidity. While a higher DOH could be due to strategic reasons like stocking up inventory in anticipation of increased demand or seasonal fluctuations, it could also indicate slow-moving inventory or inefficiencies in managing and selling products promptly.

It would be important for Papa John's management to monitor and optimize inventory levels to ensure that inventory turnover remains efficient, balancing the need to meet customer demand while avoiding excess inventory holding costs. Regularly reviewing and adjusting inventory strategies and potentially renegotiating supplier contracts could help in improving inventory turnover and operational efficiency.