Flowers Foods Inc (FLO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		9.81	9.72	10.33	10.69	11.36
DOH	days	37.20	37.56	35.35	34.14	32.13

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.81
= 37.20

Based on the data provided, Flowers Foods Inc's days of inventory on hand (DOH) has shown a slight increasing trend over the years. DOH has grown from 32.13 days as of December 31, 2020, to 37.20 days as of December 31, 2024. This indicates that, on average, the company held its inventory for longer periods before selling it during this period.

A higher DOH value suggests that Flowers Foods Inc may be facing challenges in managing its inventory efficiently. It could imply issues such as overstocking, slow-moving inventory, or inadequate sales. This could impact the company's liquidity, as excess inventory ties up cash flow and may lead to increased holding costs.

It is essential for Flowers Foods Inc to closely monitor its inventory levels and optimize its supply chain management to improve inventory turnover and reduce DOH. By doing so, the company can enhance its operational efficiency, reduce carrying costs, and better respond to changing market demands.