Floor & Decor Holdings Inc (FND)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,400,360 | 4,121,610 | 3,298,340 | 2,367,910 | 2,025,920 |
| Inventory | US$ in thousands | 1,106,150 | 1,292,340 | 1,008,150 | 654,000 | 581,865 |
| Inventory turnover | 3.98 | 3.19 | 3.27 | 3.62 | 3.48 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,400,360K ÷ $1,106,150K
= 3.98
Floor & Decor Holdings Inc's inventory turnover has shown some fluctuations over the five-year period from 2019 to 2023. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period.
In 2019, the inventory turnover ratio was 3.48, which means the company's inventory, on average, turned over approximately 3.48 times during that year. This figure increased slightly to 3.62 in 2020, implying that the company was managing its inventory more efficiently that year.
However, in 2021, the inventory turnover ratio decreased to 3.27, indicating a slower rate of inventory turnover compared to the previous year. The ratio then experienced a notable increase in 2022 to 3.19, suggesting that the company was able to sell and replace its inventory more frequently.
By the end of 2023, the inventory turnover ratio further improved to 3.98, reaching the highest level in the five-year period. This indicates that Floor & Decor Holdings Inc was able to efficiently manage its inventory in the most recent year, turning over its inventory almost 4 times on average.
Overall, the trend in Floor & Decor Holdings Inc's inventory turnover suggests that the company has been making efforts to optimize its inventory management over the five-year period, with fluctuations possibly attributable to changes in sales volume or inventory control strategies.
Peer comparison
Dec 31, 2023