Simply Good Foods Co (SMPL)

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds its inventory before selling it. A lower DOH indicates that the company is efficiently managing its inventory turnover, whereas a higher DOH may suggest slower selling or potentially obsolete inventory.

Analyzing Simply Good Foods Co's DOH over the past five years shows some fluctuations in inventory management. In 2024, the company's DOH increased to 63.27 days from 53.92 days in 2023, indicating a longer time period for converting inventory into sales. This could suggest potential inefficiencies in inventory management or slower sales relative to inventory levels.

Comparing this to the historical trend, the DOH was also high in 2022 at 63.34 days and 2021 at 59.58 days, indicating a recurring pattern of longer inventory holding periods in recent years. However, in 2020, the DOH was relatively lower at 43.81 days, suggesting more efficient inventory management and quicker turnover.

Overall, monitoring the DOH of Simply Good Foods Co can provide insights into its inventory management efficiency and potential operational challenges. Continued fluctuations in this ratio may warrant further investigation into the company's inventory practices and sales performance.

Peer comparison

Aug 31, 2024