Somnigroup International Inc. (SGI)

Days of Inventory on Hand (DOH) is a crucial ratio for Somnigroup International Inc. as it indicates the average number of days the company holds inventory before selling it. Looking at the data provided, we observe a fluctuating trend in Somnigroup's DOH over the five-year period from 2020 to 2024.

In December 2020, the company held inventory for approximately 55.88 days before selling it, showing a reasonable turnover rate. However, this number increased to 61.08 days by December 2021, indicating a slower inventory turnover, which could potentially tie up more of the company's working capital.

By December 2022, the DOH further rose to 70.54 days, signifying an extended period of holding inventory. This could suggest inefficiencies in inventory management, such as overstocking or slowing sales. However, the company managed to bring down the DOH to 63.05 days by December 2023, showing some improvement in managing inventory levels.

In the most recent year, December 2024, the DOH decreased further to 59.31 days. While this indicates a better inventory turnover compared to the previous year, it is still higher than the level in 2020. Somnigroup International Inc. should continue to monitor and possibly optimize its inventory management practices to strike a balance between meeting customer demand and minimizing holding costs.

Peer comparison

Dec 31, 2024