Fortune Brands Innovations Inc. (FBIN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.08 | 3.92 | 3.45 | 3.25 | 2.73 | 1.90 | 2.00 | 2.16 | 3.19 | 2.81 | 3.33 | 3.81 | 4.53 | 5.16 | 5.02 | 5.34 | 5.17 | 4.87 | 4.91 | 4.85 | |
| DOH | days | 89.38 | 93.16 | 105.72 | 112.29 | 133.61 | 192.22 | 182.42 | 169.28 | 114.30 | 129.89 | 109.69 | 95.82 | 80.63 | 70.68 | 72.71 | 68.39 | 70.66 | 75.01 | 74.30 | 75.24 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.08
= 89.38
Days of Inventory on Hand (DOH) is a measure of how efficiently a company manages its inventory. It indicates the number of days it takes for a company to turn its inventory into sales. A lower DOH value is generally preferred, as it suggests that the company is able to sell its inventory quickly.
In the case of Fortune Brands Innovations Inc., the trend in DOH over the past few quarters has been somewhat volatile. The DOH increased from 75.24 days at the end of Q2 2019 to a peak of 192.22 days at the end of Q3 2022, indicating a significant deterioration in inventory management efficiency during this period. However, there has been a gradual improvement in the DOH since then, with the latest value at 89.38 days at the end of Q4 2023.
The fluctuations in DOH may be attributed to various factors such as changes in demand patterns, production inefficiencies, or inventory mismanagement. It is important for Fortune Brands Innovations Inc. to closely monitor its inventory levels and implement strategies to optimize its inventory turnover rate to improve cash flow and profitability.
Overall, while there has been some improvement in inventory management efficiency recently, Fortune Brands Innovations Inc. should continue to focus on maintaining optimal inventory levels to enhance operational performance and financial health.
Peer comparison
Dec 31, 2023