Floor & Decor Holdings Inc (FND)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.98 | 3.19 | 3.27 | 3.62 | 3.48 | |
| DOH | days | 91.75 | 114.45 | 111.56 | 100.81 | 104.83 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.98
= 91.75
Floor & Decor Holdings Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The DOH decreased from 104.83 days in 2019 to 100.81 days in 2020, indicating that the company managed its inventory more efficiently that year. However, the DOH increased in 2021 to 111.56 days and further increased in 2022 to 114.45 days, suggesting a potential inventory management challenge or a buildup of excess inventory during those periods.
In the most recent year, 2023, the DOH decreased to 91.75 days, signifying an improvement in the efficiency of inventory management compared to the previous year. This reduction could imply better inventory control measures or adjustments in procurement and production processes.
Overall, monitoring the DOH can provide insights into how effectively the company is managing its inventory levels. A lower DOH generally indicates efficient inventory management, while a higher DOH may indicate excess or slow-moving inventory that could potentially impact the company's profitability and cash flow. It is essential for Floor & Decor Holdings Inc to continue monitoring and optimizing its inventory management practices to maintain a healthy balance between maintaining adequate inventory levels and minimizing carrying costs.
Peer comparison
Dec 31, 2023