Freshpet Inc (FRPT)

Days of inventory on hand (DOH)

Mar 31, 2025 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
Inventory turnover 7.41 7.25 7.97 7.69 7.53 8.23 8.39 7.17 6.60 7.00 5.64 5.31 6.48 7.40 8.28 9.11 9.38 9.72 9.56 8.26
DOH days 49.25 50.36 45.82 47.48 48.49 44.34 43.53 50.93 55.34 52.13 64.75 68.80 56.32 49.31 44.08 40.05 38.92 37.54 38.18 44.19

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.41
= 49.25

The data indicates that Freshpet Inc.'s days of inventory on hand (DOH) have experienced notable fluctuations over the observed period from June 30, 2020, through March 31, 2025. Initially, the DOH was approximately 44.19 days at the end of June 2020, followed by a decline to a low of 37.54 days as of December 31, 2020. This suggests an initial improvement in inventory management during that year.

However, from March 2021 onward, the DOH increased gradually, reaching approximately 49.31 days by the end of December 2021. The upward trend intensified in 2022, with DOH peaking at 68.80 days at the end of June 2022, indicating a significant buildup of inventory levels. Subsequent quarters in 2022 showed some reduction but remained comparatively high, with the DOH at 52.13 days as of December 2022.

In 2023, the DOH demonstrated some stabilization, fluctuating around the mid-50s to low 40s. Specifically, it decreased to 43.53 days at the end of September 2023 but later increased slightly again to 44.34 days by the end of December 2023. The trend continued into early 2024, with the DOH moving around the high 40s to low 50s, thus reflecting relative seasonal stability, albeit at a higher level than the initial period observed in 2020.

Overall, the company's inventory turnover periods have increased substantially since 2020, suggesting a lengthening of the inventory holding periods. This trend may indicate either strategic inventory accumulation, supply chain adjustments, or changes in sales velocity. The recent stabilization around 45-50 days signifies a possible balancing point between maintaining adequate inventory levels and avoiding excessive stockpiling, although the elevated DOH compared to earlier years signals room for further efficiency improvements.