Sonoco Products Company (SON)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.07 | 5.44 | 8.29 | 9.55 | 8.82 | |
| DOH | days | 51.62 | 67.07 | 44.04 | 38.23 | 41.38 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.07
= 51.62
The days of inventory on hand (DOH) for Sonoco Products Co. have fluctuated over the past five years. In 2023, the company had 52.81 days of inventory on hand, indicating a decrease from 68.82 days in 2022. This decrease suggests that the company has been able to manage its inventory more efficiently in 2023.
Comparing 2023 DOH to previous years, it is still higher than the 45.31 days in 2021, 39.25 days in 2020, and 42.60 days in 2019. This suggests that there may still be room for improvement in inventory management practices to reduce the number of days inventory is held before being sold.
A lower DOH generally indicates that the company is selling its inventory more quickly, which can lead to lower holding costs and potentially higher profitability. It is important for Sonoco Products Co. to continue monitoring and optimizing its inventory levels to strike the right balance between having enough inventory to meet demand and minimizing excess inventory holding costs.
Peer comparison
Dec 31, 2023