Floor & Decor Holdings Inc (FND)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,642,326 | 2,622,210 | 2,630,511 | 2,586,288 | 2,555,536 | 2,561,725 | 2,611,842 | 2,609,140 | 2,576,882 | 2,524,462 | 2,345,233 | 2,186,339 | 2,011,267 | 1,867,631 | 1,746,605 | 1,517,595 | 1,390,896 | 1,271,757 | 1,188,843 | 1,225,671 |
| Inventory | US$ in thousands | 1,132,600 | 1,046,010 | 1,037,280 | 1,032,130 | 1,106,150 | 1,105,450 | 1,172,490 | 1,181,150 | 1,292,340 | 1,320,460 | 1,344,140 | 1,149,530 | 1,008,150 | 833,122 | 683,811 | 607,649 | 654,000 | 598,461 | 594,269 | 588,941 |
| Inventory turnover | 2.33 | 2.51 | 2.54 | 2.51 | 2.31 | 2.32 | 2.23 | 2.21 | 1.99 | 1.91 | 1.74 | 1.90 | 2.00 | 2.24 | 2.55 | 2.50 | 2.13 | 2.13 | 2.00 | 2.08 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,642,326K ÷ $1,132,600K
= 2.33
Floor & Decor Holdings Inc's inventory turnover has fluctuated over the periods provided. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio is generally preferred as it suggests efficient management of inventory.
From March 31, 2020, to June 30, 2022, the inventory turnover ratios ranged from 1.74 to 2.55, with a general upward trend indicating improving efficiency in managing inventory during these periods.
However, from September 30, 2022, to December 31, 2024, the inventory turnover ratios fluctuated between 1.91 and 2.54, showing some variability in inventory management efficiency during these periods. Notably, the inventory turnover ratio decreased from 2.55 on June 30, 2021, to 1.74 on June 30, 2022, which may indicate potential issues with managing inventory during that specific period.
Overall, maintaining a balance between meeting customer demand and efficiently managing inventory levels is crucial for Floor & Decor Holdings Inc to optimize its operations and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024