Somnigroup International Inc. (SGI)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.49 | 5.36 | 5.65 | 5.79 | 5.84 | 5.43 | 5.05 | 5.17 | 4.89 | 4.79 | 5.00 | 5.98 | 6.73 | 7.43 | 6.77 | 6.53 | 7.08 | 6.99 | 6.66 | 6.77 | |
| DOH | days | 66.49 | 68.16 | 64.62 | 63.05 | 62.46 | 67.17 | 72.25 | 70.54 | 74.66 | 76.15 | 73.07 | 61.08 | 54.27 | 49.11 | 53.92 | 55.88 | 51.54 | 52.19 | 54.83 | 53.91 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.49
= 66.49
The days of inventory on hand (DOH) for Somnigroup International Inc. have shown some fluctuations over the past few years.
From December 31, 2019, to December 31, 2020, the DOH remained relatively stable, ranging between 51.54 days and 55.88 days. However, starting from March 31, 2021, there was a slight decrease in DOH, which reached its lowest point of 49.11 days on June 30, 2021. This could indicate that the company was managing its inventory more efficiently during this period.
Subsequently, there was an increase in DOH, peaking at 76.15 days on June 30, 2022. This significant rise suggests that the company might have been facing challenges in managing its inventory levels effectively, possibly leading to excess inventory or slower sales.
Although there was a slight decrease in DOH in the following quarters, the metric remained relatively high, with values above 60 days. This could be a cause for concern as higher DOH typically indicates slower inventory turnover and potential risks of obsolete inventory or storage costs.
Overall, it is essential for Somnigroup International Inc. to closely monitor and optimize its inventory management strategies to maintain an appropriate balance between having enough inventory to meet customer demand while minimizing excess stock and associated costs.
Peer comparison
Sep 30, 2024