JM Smucker Company (SJM)
Days of inventory on hand (DOH)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.58 | 7.33 | 6.48 | 6.97 | 7.36 | |
| DOH | days | 55.46 | 49.79 | 56.34 | 52.36 | 49.59 |
April 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.58
= 55.46
The days of inventory on hand (DOH) for JM Smucker Company has shown a fluctuating trend over the past five years:
- In 2020, the DOH was 49.59 days, which increased to 52.36 days in 2021, before decreasing slightly to 56.34 days in 2022.
- The trend reversed in 2023 with a decrease to 49.79 days, only to increase again to 55.46 days in 2024.
- Overall, the company's DOH has been fairly stable, hovering around the 50-55 days range, indicating that JM Smucker has been maintaining an efficient level of inventory on hand relative to its sales volume.
- It’s important for the company to continue monitoring and managing its inventory levels effectively to optimize its operational efficiency and capital allocation.