Fortune Brands Innovations Inc. (FBIN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.03 | 4.08 | 2.73 | 3.19 | 1.68 | |
| DOH | days | 90.55 | 89.38 | 133.61 | 114.30 | 217.26 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.03
= 90.55
Days of Inventory on Hand (DOH) is a crucial efficiency ratio that measures how many days, on average, a company holds onto its inventory before selling it. A lower DOH indicates quicker inventory turnover and more efficient inventory management.
For Fortune Brands Innovations Inc., the trend in DOH over the past five years is notable. In December 31, 2020, the company held inventory for approximately 217.26 days, signifying a longer holding period. However, there has been a significant improvement in inventory management efficiency since then. By December 31, 2024, the DOH dropped to approximately 90.55 days.
The decreasing trend in DOH suggests that Fortune Brands Innovations Inc. has made strides in optimizing its inventory management processes. This improvement indicates better control over inventory levels, which can lead to reduced carrying costs, minimized risks of obsolescence, and potentially increased cash flow from quicker inventory turnover.
Overall, the declining trend in DOH for Fortune Brands Innovations Inc. reflects positive changes in inventory management efficiency over the period analyzed. This indicates potential operational improvements and a positive impact on the company's financial performance.
Peer comparison
Dec 31, 2024