Fastenal Company (FAST)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.83 | 3.24 | 3.15 | 3.38 | 3.13 | |
| DOH | days | 95.35 | 112.58 | 115.75 | 108.10 | 116.48 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.83
= 95.35
Fastenal Co.'s Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years, ranging from 139.22 days in 2023 to 176.96 days in 2019. A lower DOH indicates that the company is managing its inventory efficiently by swiftly converting it into sales, while a higher DOH may signify slower inventory turnover.
In 2023, Fastenal Co. improved its inventory management compared to the prior years, as reflected by the decrease in DOH to 139.22 days. This suggests a more efficient use of resources and potentially better cash flow management. Conversely, in 2019, the company had a higher DOH of 176.96 days, indicating a longer time taken to sell its inventory, which may tie up capital and lead to higher carrying costs.
Overall, analyzing the DOH for Fastenal Co. provides insights into its inventory management effectiveness and operational efficiency. Evaluating this ratio over time can help identify trends and areas where the company may need to focus on improving inventory turnover to enhance profitability and liquidity.
Peer comparison
Dec 31, 2023