Fortune Brands Innovations Inc. (FBIN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.08 | 2.73 | 3.19 | 1.68 | 5.17 | |
| DOH | days | 89.38 | 133.61 | 114.30 | 217.26 | 70.66 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.08
= 89.38
The days of inventory on hand (DOH) ratio for Fortune Brands Innovations Inc. has shown fluctuations over the past five years. In 2023, the company held inventory for an average of 89.38 days, a decrease from the previous year's 133.61 days. This suggests that in 2023, the company managed its inventory more efficiently, potentially improving inventory turnover and liquidity.
Comparing the DOH ratio to 2021, the decrease from 114.30 days to 89.38 days indicates a positive trend in inventory management efficiency. A lower DOH ratio generally signifies that the company is selling its products faster, reducing the risk of obsolescence and storage costs.
In contrast, the significant increase in DOH from 2019 to 2020, from 70.66 days to 217.26 days, may indicate overproduction, slowing sales, or inefficient inventory management during that year. However, the subsequent improvements in 2021, 2022, and 2023 demonstrate that the company took steps to address these issues and optimize its inventory levels.
Overall, a downward trend in the days of inventory on hand ratio for Fortune Brands Innovations Inc. indicates improved inventory management efficiency and potentially better liquidity and working capital management in recent years.
Peer comparison
Dec 31, 2023