Performance Food Group Co (PFGC)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.60 | 15.04 | 13.31 | 14.61 | 14.34 | |
| DOH | days | 23.40 | 24.26 | 27.42 | 24.98 | 25.45 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.60
= 23.40
Performance Food Group Co's days of inventory on hand (DOH) have shown a decreasing trend over the past five years based on the data provided. As of June 30, 2020, the company held inventory for an average of 25.45 days, which decreased slightly to 24.98 days by June 30, 2021.
However, there was a slight increase in DOH to 27.42 days by June 30, 2022. Subsequently, the trend reversed, with DOH decreasing to 24.26 days by June 30, 2023, and further dropping to 23.40 days by June 30, 2024.
Overall, the decreasing trend in days of inventory on hand indicates that the company has been more efficient in managing its inventory levels over the years, which could lead to improved working capital management and potentially higher profitability through reduced holding costs and risk of obsolescence. Performance Food Group Co's ability to efficiently manage its inventory levels is a positive sign for its operational efficiency and financial performance.
Peer comparison
Jun 30, 2024