Somnigroup International Inc. (SGI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.79 | 5.17 | 5.98 | 6.53 | 6.77 | |
| DOH | days | 63.05 | 70.54 | 61.08 | 55.88 | 53.91 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.79
= 63.05
The days of inventory on hand (DOH) for Somnigroup International Inc. has exhibited an increasing trend over the past five years. In December 31, 2019, the DOH was 53.91 days, which slightly increased to 55.88 days by December 31, 2020. Subsequently, the DOH continued to rise to 61.08 days by the end of December 31, 2021, indicating that the company held inventory for a longer period.
By December 31, 2022, the DOH further increased to 70.54 days, reaching its peak over the period under review. However, there was a slight decrease in inventory holding period by December 31, 2023, with a DOH of 63.05 days.
Overall, the upward trend in the days of inventory on hand suggests that Somnigroup International Inc. might be facing challenges in efficiently managing its inventory levels or may be experiencing slower inventory turnover. This could potentially tie up more of the company's capital in inventory and lead to increased carrying costs. Management should closely monitor and optimize inventory levels to improve efficiency and avoid potential inventory obsolescence issues.
Peer comparison
Dec 31, 2023