Sonoco Products Company (SON)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.10 | 6.90 | 5.27 | 8.06 | 9.30 | |
| DOH | days | 89.03 | 52.87 | 69.23 | 45.31 | 39.25 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.10
= 89.03
Sonoco Products Company's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The DOH increased from 39.25 days as of December 31, 2020, to 45.31 days as of December 31, 2021, indicating a slight rise in the number of days it takes for the company to sell its inventory. However, there was a significant surge in DOH to 69.23 days by December 31, 2022, suggesting that the company may have been holding excess inventory levels during that period.
Subsequently, there was a decrease in DOH to 52.87 days by December 31, 2023, potentially reflecting efforts to optimize inventory management practices. However, the DOH rose sharply to 89.03 days by December 31, 2024, indicating a substantial increase in the number of days of inventory held by the company, possibly signaling challenges in inventory turnover efficiency.
Overall, Sonoco Products Company's DOH has displayed volatility over the years, and it may be worthwhile for the company to assess its inventory management strategies to ensure optimal levels that balance inventory turnover with meeting customer demand effectively.
Peer comparison
Dec 31, 2024