Fox Factory Holding Corp (FOXF)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.45 | 3.79 | 3.86 | 5.97 | 4.81 | |
| DOH | days | 105.78 | 96.42 | 94.57 | 61.16 | 75.94 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.45
= 105.78
The Days of Inventory on Hand (DOH) for Fox Factory Holding Corp has shown variability over the past five years, with an increasing trend from 2019 to 2023. In 2019, the DOH was 75.94 days, which increased to 105.78 days by the end of 2023. This indicates that the company has been holding inventory for a longer period in recent years.
A higher DOH value may signify potential inefficiencies in inventory management, such as overstocking or slow inventory turnover. It could indicate that the company is tying up more capital in inventory, which could impact liquidity and working capital management.
It is crucial for Fox Factory Holding Corp to monitor and optimize its inventory levels to strike a balance between meeting customer demand and minimizing holding costs. Analyzing the reasons behind the trend in DOH can help the company make informed decisions to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2023