The Wendy’s Co (WEN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 177.59 | 162.29 | 164.88 | 198.58 | 256.58 | |
| DOH | days | 2.06 | 2.25 | 2.21 | 1.84 | 1.42 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 177.59
= 2.06
The days of inventory on hand (DOH) for Wendy's Co has shown some fluctuation over the past five years. In 2023, the company had 3.07 days worth of inventory on hand, which is a decrease compared to the previous year's 3.37 days. This may indicate that Wendy's Co managed its inventory more efficiently in 2023.
Comparing 2023 to 2019, Wendy's Co has shown an overall increase in DOH from 2.38 days to 3.07 days. This suggests that the company may be carrying more inventory on hand in recent years, which could tie up more capital and impact liquidity.
It's essential for Wendy's Co to strike a balance between having enough inventory to meet demand and preventing excess inventory holding costs. A downward trend in DOH is generally positive, as it indicates efficient inventory management. Further analysis of operational factors impacting inventory levels and sales trends would provide deeper insights into Wendy's Co's inventory management performance.
Peer comparison
Dec 31, 2023