Floor & Decor Holdings Inc (FND)
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 | 3.98 | 3.89 | 3.64 | 3.57 | 3.19 | 3.01 | 2.80 | 3.09 | 3.27 | 3.67 | 4.19 | 4.19 | 3.62 | 2.58 | 2.41 | 2.48 | 2.39 | 3.98 | 4.11 | 4.01 | |
| DOH | days | 91.75 | 93.89 | 100.21 | 102.32 | 114.45 | 121.36 | 130.19 | 118.31 | 111.56 | 99.59 | 87.08 | 87.11 | 100.82 | 141.69 | 151.74 | 146.97 | 152.62 | 91.78 | 88.91 | 90.98 |
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 fluctuated over the past few years, ranging from a low of 87.08 days in June 2021 to a high of 151.74 days in September 2020. The company's inventory management improved in more recent periods, with the DOH decreasing to 91.75 days as of December 31, 2023.
A higher DOH indicates that the company is holding onto inventory for a longer period before selling it, which ties up capital and may lead to higher holding costs. Conversely, a lower DOH suggests more efficient inventory turnover and potentially better liquidity.
It's important for Floor & Decor Holdings Inc to strike a balance in managing its inventory to avoid stockouts while minimizing excess inventory holding costs. Monitoring the trend in the DOH ratio can provide insights into the company's efficiency in managing its inventory levels and operations.
Peer comparison
Dec 31, 2023