Treehouse Foods Inc (THS)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.35 | 5.01 | 5.37 | 4.09 | 6.42 | |
| DOH | days | 68.26 | 72.88 | 67.96 | 89.19 | 56.86 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.35
= 68.26
Treehouse Foods Inc's Days of Inventory on Hand (DOH) has exhibited fluctuations over the last five years. The DOH was 68.26 days at the end of 2023, slightly down from 73.21 days in 2022. This indicates that the company held inventory for approximately 68 days before selling it. Comparing this to 2021 and 2020, where the DOH was 68.16 days and 61.59 days respectively, there seems to have been an increase in the time taken to sell inventory. However, this is still higher than in 2019 when the DOH was 56.86 days.
A higher DOH can suggest inefficiencies in inventory management, tying up capital in unsold goods and potentially leading to increased holding costs. It could also indicate slow-moving or obsolete inventory. Treehouse Foods Inc may need to closely monitor its inventory levels and distribution channels to improve inventory turnover and optimize working capital efficiency.
Peer comparison
Dec 31, 2023