Wingstop Inc (WING)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 318.21 | 341.02 | 253.33 | 302.70 | 320.00 | |
| DOH | days | 1.15 | 1.07 | 1.44 | 1.21 | 1.14 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 318.21
= 1.15
The days of inventory on hand (DOH) ratio measures the average number of days it takes for a company to sell its entire inventory. A lower DOH indicates that the company is efficiently managing its inventory turnover.
Analyzing Wingstop Inc's DOH over the past five years, we observe a fluctuating trend. In 2023, the DOH increased to 1.15 days from 1.07 days in 2022, indicating a slight decrease in the efficiency of inventory turnover. However, compared to 2021 (1.44 days) and 2020 (1.21 days), the current DOH remains relatively low.
The company's DOH has generally been within a narrow range between 1.07 to 1.44 days over the past five years, suggesting consistent inventory management practices. While the slight increase in 2023 could be a point of concern, it is important to consider industry benchmarks and specific business circumstances to assess the effectiveness of Wingstop's inventory management strategies.
Peer comparison
Dec 31, 2023