Performance Food Group Co (PFGC)
Days of inventory on hand (DOH)
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.18 | 13.42 | 14.83 | 14.52 | 12.90 | |
| DOH | days | 24.05 | 27.20 | 24.62 | 25.14 | 28.29 |
June 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.18
= 24.05
Performance Food Group Co's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The company's DOH was 24.05 days as of June 30, 2023, a slight improvement from the prior year's 27.20 days. This suggests that the company is managing its inventory more efficiently, taking fewer days to sell its inventory.
Compared to the DOH of 24.62 days in 2021 and 25.14 days in 2020, the recent decrease in DOH is a positive sign of the company's inventory management effectiveness. Additionally, looking back to 2019 with a DOH of 28.29 days, the current level indicates significant improvement over the past five years.
It is important to note that a lower DOH typically signifies more efficient inventory management, as it indicates that the company is selling its inventory more quickly. This could result in reduced carrying costs and potentially higher inventory turnover, ultimately contributing to improved financial performance for Performance Food Group Co.
Peer comparison
Jun 30, 2023