Wingstop Inc (WING)

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		348.12	4.69	4.95	3.88	341.02	—	—	—	253.33	4.44	4.77	4.50	302.70	4.85	8.89	6.80	320.00	7.10	12.20	5.82
DOH	days	1.05	77.88	73.79	94.07	1.07	—	—	—	1.44	82.29	76.47	81.09	1.21	75.21	41.05	53.70	1.14	51.38	29.92	62.67

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 348.12
= 1.05

Days of Inventory on Hand (DOH) is a financial ratio that indicates the average number of days a company holds its inventory before selling it. A lower number of days of inventory on hand suggests that a company is efficiently managing its inventory, while a higher number may indicate slower inventory turnover or potential issues with inventory management.

Based on the historical data for Wingstop Inc, the DOH has shown variability over time. In the most recent period, as of December 31, 2023, the company had a very low DOH of 1.05 days, indicating that Wingstop was able to quickly convert its inventory into sales during that period.

On the other hand, there were periods with significantly higher DOH values, such as September 30, 2023 (77.88 days), June 30, 2023 (73.79 days), and March 31, 2023 (94.07 days). These higher DOH values suggest that Wingstop may have faced challenges in efficiently managing its inventory during those quarters, potentially resulting in excess inventory levels or slower inventory turnover.

It is worth noting that there were also periods with relatively low DOH values, such as December 31, 2022 (1.07 days), September 30, 2021 (1.44 days), and December 31, 2020 (1.21 days), indicating improved inventory management efficiency during those periods.

Overall, the trend in Wingstop's DOH ratio shows fluctuations, highlighting the importance of monitoring inventory management practices to maintain optimal levels that support the company's operations and financial performance.