Haverty Furniture Companies Inc (HVT)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.46 | 8.31 | 7.79 | 8.11 | 7.85 | 6.66 | 6.72 | 7.48 | 7.98 | 7.32 | 7.29 | 7.15 | 7.86 | 5.48 | 4.81 | 5.11 | 5.45 | 7.65 | 6.98 | 7.02 | |
| DOH | days | 43.15 | 43.95 | 46.88 | 45.01 | 46.48 | 54.84 | 54.35 | 48.81 | 45.72 | 49.83 | 50.10 | 51.06 | 46.45 | 66.62 | 75.89 | 71.36 | 67.00 | 47.69 | 52.32 | 52.01 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.46
= 43.15
The Days of Inventory on Hand (DOH) for Haverty Furniture Cos., Inc. has been fluctuating over the last eight quarters, ranging from a low of 95.44 days in Q1 2023 to a high of 114.37 days in Q3 2022. The average DOH over this period is approximately 102 days, indicating that on average, the company holds inventory for about 102 days before it is sold.
A higher DOH may suggest that the company is carrying excess inventory, which could tie up working capital and lead to potential obsolescence or markdowns. Conversely, a lower DOH could imply efficient inventory management but might also lead to stockouts and missed sales opportunities.
The recent downward trend in DOH from Q3 2022 to Q1 2023 suggests that the company may be improving its inventory management efficiency by reducing the number of days inventory is held before being sold. This trend is generally positive as it may indicate better working capital management and potentially higher profitability if the company can maintain or lower DOH levels while meeting customer demand.
It is important for Haverty Furniture Cos., Inc. to continue monitoring its inventory levels closely to strike a balance between having enough stock to fulfill customer orders and minimizing excess inventory holding costs. Periodic reviews of inventory turnover ratios and comparison with industry benchmarks can help the company evaluate the effectiveness of its inventory management strategies.
Peer comparison
Dec 31, 2023