Sonoco Products Company (SON)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.75 | 7.34 | 6.60 | 5.92 | 6.14 | 6.92 | 6.79 | 7.07 | 10.19 | 9.76 | 10.06 | 10.42 | 10.84 | 7.97 | 6.84 | 7.36 | 7.40 | 7.46 | 7.30 | 4.86 | |
| DOH | days | 47.12 | 49.72 | 55.31 | 61.63 | 59.47 | 52.76 | 53.73 | 51.60 | 35.84 | 37.38 | 36.28 | 35.02 | 33.67 | 45.78 | 53.34 | 49.56 | 49.31 | 48.94 | 50.02 | 75.04 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.75
= 47.12
The days of inventory on hand (DOH) for Sonoco Products Co. have shown some fluctuations over the past eight quarters. In Q1 2022, the company had 65.31 days of inventory on hand, which increased in the subsequent quarters until reaching a peak of 68.82 days in Q4 2022. However, in Q1 2023, there was a significant decrease in DOH to 68.55 days, indicating a more efficient management of inventory.
Despite this improvement, the trend reversed in the following quarters, with DOH increasing to 61.56 days in Q2 2023 and further to 55.71 days in Q3 2023. The latest data in Q4 2023 shows that the company had 52.81 days of inventory on hand, which is a further reduction compared to the previous quarter.
Overall, the fluctuations in DOH suggest that Sonoco Products Co. may be experiencing challenges in optimizing its inventory management practices. It would be prudent for the company to closely monitor its inventory levels and implement strategies to ensure that inventory is managed efficiently to meet demand effectively and reduce carrying costs.
Peer comparison
Dec 31, 2023