Floor & Decor Holdings Inc (FND)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 17.95 | 22.45 | 22.73 | 24.06 | 26.81 | 27.29 | 20.08 | 13.54 | 9.46 | 9.48 | 12.45 | 16.06 | 14.23 | 11.49 | 10.00 | 6.82 | 7.10 | 6.28 | 6.97 | 4.78 |
The analysis of Floor & Decor Holdings Inc activity ratios reveals important insights into the efficiency of the company's operations:
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Floor & Decor's inventory turnover has fluctuated over the years, ranging from a low of 1.74 to a high of 2.55. A higher ratio indicates that the company is selling its inventory more quickly, which is generally positive as it signifies efficient inventory management.
2. Receivables Turnover: Unfortunately, there is no data available for the receivables turnover ratio for Floor & Decor. This ratio would have provided insights into how quickly the company is collecting payments from its customers.
3. Payables Turnover: Similar to receivables turnover, no data is available for payables turnover, which would have indicated how quickly the company pays its suppliers.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company generates revenue with its working capital. Floor & Decor's working capital turnover has shown a varying trend, starting at 4.78 and peaking at 27.29. A higher ratio indicates that the company is utilizing its working capital effectively to generate sales.
Overall, while the company's inventory turnover and working capital turnover ratios show fluctuating trends, further analysis would be needed in the absence of data on receivables and payables turnover to provide a comprehensive assessment of Floor & Decor's overall efficiency in managing its operating assets.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 156.45 | 145.60 | 143.93 | 145.66 | 157.99 | 157.51 | 163.85 | 165.23 | 183.05 | 190.92 | 209.20 | 191.91 | 182.96 | 162.82 | 142.90 | 146.15 | 171.62 | 171.76 | 182.45 | 175.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Floor & Decor Holdings Inc's Days of Inventory on Hand (DOH) shows an increasing trend from March 31, 2020, to June 30, 2022, indicating a greater number of days it takes for the company to sell its inventory. However, there was a decrease in DOH from June 30, 2022, to June 30, 2024, suggesting an improvement in inventory management efficiency during that period.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, so it is not possible to provide a comprehensive analysis of these ratios.
Overall, a decreasing trend in DOH over time is generally positive as it indicates a more efficient management of inventory levels, which can help improve cash flow and profitability.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 1.54 | 3.05 | 3.24 | 1.73 | 3.55 | 1.73 | 3.65 | 3.70 | 3.88 | 1.71 | 4.34 | 4.19 | 4.40 | 1.52 | 1.59 |
| Total asset turnover | 0.88 | 0.89 | 0.91 | 0.94 | 0.95 | 0.95 | 0.98 | 1.01 | 0.98 | 0.97 | 0.93 | 0.95 | 0.92 | 0.89 | 0.91 | 0.89 | 0.84 | 0.82 | 0.82 | 0.81 |
Floor & Decor Holdings Inc's Fixed Asset Turnover ratio has shown some fluctuations over the years. It increased significantly from September 2020 to March 2021, indicating improved efficiency in generating sales from fixed assets. However, there was a decline in the ratio in the subsequent quarters, with some fluctuations observed thereafter.
On the other hand, the Total Asset Turnover ratio has generally been on an upward trend from March 2020 to December 2023. This indicates that the company has been more efficient in utilizing all its assets to generate sales over the years, with a peak reached in March 2023. However, there was a slight decline in the ratio towards the end of 2023 and into 2024.
Overall, it appears that Floor & Decor Holdings Inc has been effectively utilizing its total assets to generate revenue, although there have been some fluctuations in the efficiency of utilizing fixed assets specifically. It would be important to assess the reasons behind these fluctuations to understand the company's operational performance more comprehensively.