Flowers Foods Inc (FLO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 25.94 | 26.00 | 29.10 | 31.55 | 29.83 | |
| DOH | days | 14.07 | 14.04 | 12.54 | 11.57 | 12.23 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 25.94
= 14.07
The days of inventory on hand (DOH) for Flowers Foods Inc have shown a generally increasing trend over the past five years. In particular, the DOH increased from 12.23 days in 2019 to 14.07 days in 2023. This indicates that the company is holding onto its inventory for a longer period before it is sold.
A higher DOH could potentially signify inefficiencies in inventory management, as it suggests that the company is taking longer to sell its products or has excess inventory on hand. This could tie up capital and increase carrying costs associated with inventory.
It would be advisable for Flowers Foods Inc to closely monitor and possibly optimize its inventory management practices to reduce the DOH and improve overall operational efficiency. This could involve better forecasting of demand, streamlining production processes, and implementing more effective inventory control measures.
Peer comparison
Dec 31, 2023