Builders FirstSource Inc (BLDR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		12.42	13.50	10.99	10.25	12.31
DOH	days	29.38	27.03	33.22	35.60	29.65

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.42
= 29.38

Builders Firstsource Inc's days of inventory on hand (DOH) has shown some fluctuations over the past five years. In 2023, the company had 40.44 days of inventory on hand, which increased compared to the previous year but remained lower than the levels in 2020 and 2021. This indicates that the company held inventory for a slightly longer period in 2023.

In 2022, Builders Firstsource Inc managed its inventory more efficiently with 34.75 days of inventory on hand, reflecting a decrease from the prior year. However, this improvement was preceded by a higher DOH in 2021, which stood at 42.27 days, suggesting that the company held inventory for a longer period.

In 2020, the company experienced an increase in DOH to 45.19 days, indicating that inventory turnover slowed down compared to 2019 when the DOH was 38.63 days. Overall, it is important for Builders Firstsource Inc to continue monitoring and managing its inventory levels effectively to maintain optimal working capital efficiency and profitability.