Builders FirstSource Inc (BLDR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		9.09	9.02	10.50	8.64	8.08
DOH	days	40.17	40.44	34.75	42.27	45.19

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.09
= 40.17

Builders FirstSource Inc's days of inventory on hand (DOH) has shown a general decreasing trend over the period from December 31, 2020, to December 31, 2024. Specifically, the DOH decreased from 45.19 days as of December 31, 2020, to 42.27 days as of December 31, 2021, indicating an improvement in the management of inventory turnover.

Subsequently, the DOH further decreased to 34.75 days as of December 31, 2022, suggesting that Builders FirstSource Inc was able to more efficiently manage its inventory levels. However, there was a slight increase in DOH to 40.44 days as of December 31, 2023, which may indicate a possible decrease in inventory turnover efficiency during that period.

As of December 31, 2024, the DOH slightly decreased to 40.17 days, which implies a relatively stable inventory management performance compared to the previous year.

Overall, the decreasing trend in DOH demonstrates an effort by Builders FirstSource Inc to optimize its inventory levels and improve operational efficiency over the analyzed period. However, it is essential for the company to monitor inventory turnover closely to maintain an appropriate balance between inventory levels and sales demand.