Sprouts Farmers Market LLC (SFM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 20.04 | 19.46 | 21.73 | 23.91 | 19.62 | |
| DOH | days | 18.21 | 18.76 | 16.80 | 15.27 | 18.60 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 20.04
= 18.21
Sprouts Farmers Market Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The company's average DOH during this period has been 25.76 days.
In 2023, the DOH increased to 27.34 days from 27.95 days in 2022. This increase indicates that, on average, Sprouts Farmers Market Inc held inventory for a longer period in 2023 compared to the previous year, which may suggest potential inefficiencies in managing inventory levels.
In 2022, the DOH was 24.90 days, which was higher than in 2021 when it was 22.69 days. This increase in 2022 suggests that the company held inventory for a slightly longer period, possibly due to changes in demand or supply chain disruptions during that year.
In comparison, the DOH in 2019 was 26.93 days, which indicates that the company managed its inventory slightly more efficiently that year compared to 2023.
Overall, Sprouts Farmers Market Inc should focus on optimizing its inventory management practices to ensure a healthy balance between stocking sufficient inventory to meet customer demand while minimizing excess inventory holding costs.
Peer comparison
Dec 31, 2023