Sotera Health Co (SHC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Inventory turnover | 9.77 | 12.03 | 7.60 | |
| DOH | days | 37.35 | 30.35 | 48.00 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.77
= 37.35
The days of inventory on hand (DOH) for Sotera Health Co have fluctuated over the past five years. In 2023, the company had 37.35 days of inventory on hand, indicating that on average, it takes approximately 37 days to sell the inventory. This represents an increase from the previous year, where the DOH was 30.35 days.
In 2021, the DOH was significantly higher at 48.00 days, showing that the company took longer to sell its inventory compared to the other years in consideration. The improvement in 2022 and 2023 suggests better inventory management efficiency.
Compared to 2020 and 2019, the DOH in 2023 was slightly higher than 2019 (35.65 days) but lower than 2020 (33.22 days). This indicates that the company's inventory turnover has varied year by year, potentially influenced by factors such as demand fluctuations, supply chain disruptions, or changes in management policies.
Overall, while the DOH for Sotera Health Co has shown variability, monitoring this ratio is crucial for assessing the company's inventory management effectiveness and operational efficiency in translating inventory into sales.
Peer comparison
Dec 31, 2023