Silgan Holdings Inc (SLGN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.78 | 7.68 | 6.50 | 6.62 | 5.97 | |
| DOH | days | 63.11 | 47.54 | 56.11 | 55.15 | 61.19 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.78
= 63.11
Over the past five years, Silgan Holdings Inc.'s days of inventory on hand (DOH) has shown some fluctuations. In 2023, the company held inventory for an average of 68.74 days, which represents an increase compared to the previous year. This suggests that Silgan may be carrying more inventory relative to its sales or production levels.
In 2022, Silgan's DOH was 52.36 days, which was lower compared to 2021 and closer to the levels seen in 2020 and 2019. A lower DOH can indicate that the company is managing its inventory more efficiently, possibly due to improved inventory management practices or demand forecasting.
In 2021, Silgan's DOH increased to 61.27 days from 60.99 days in 2020, indicating a slight uptick in the number of days the company held inventory. This could be a reflection of changing market conditions or management strategies.
Overall, while there have been fluctuations in Silgan Holdings Inc.'s days of inventory on hand over the years, it is important to further investigate the reasons behind these changes to assess the company's inventory management effectiveness and operational efficiency.
Peer comparison
Dec 31, 2023