Sprouts Farmers Market LLC (SFM)
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 | 18.35 | 17.98 | 17.80 | 18.26 | 19.46 | 19.79 | 20.13 | 21.41 | 21.73 | 21.51 | 21.55 | 22.21 | 23.91 | 22.88 | 22.66 | 22.12 | 19.51 | 30.52 | 27.35 | 28.18 | |
| DOH | days | 19.89 | 20.30 | 20.51 | 19.99 | 18.76 | 18.44 | 18.13 | 17.05 | 16.80 | 16.97 | 16.94 | 16.44 | 15.27 | 15.95 | 16.11 | 16.50 | 18.71 | 11.96 | 13.35 | 12.95 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.35
= 19.89
To analyze the days of inventory on hand (DOH) for Sprouts Farmers Market Inc, we examine the historical trend based on the provided data. DOH represents the average number of days a company holds its inventory before it is sold. A lower DOH indicates efficient inventory management, while a higher DOH may suggest excess inventory or potential issues with sales.
Looking at the data, we observe a relatively consistent range of DOH over the past eight quarters. The DOH figures fluctuated between 25.27 days and 28.07 days during this period. It is worth noting that the DOH remained mostly within a narrow band, with no significant spikes or dips.
The trend reveals that Sprouts Farmers Market Inc has maintained a stable inventory management strategy, keeping the average number of days inventory on hand fairly consistent. This suggests that the company has been able to effectively balance its inventory levels to meet demand without incurring excessive carrying costs or facing shortages.
However, to gain further insights into the efficiency of Sprouts Farmers Market's inventory management, it would be beneficial to compare the company's DOH with industry benchmarks or competitors. Additionally, a more detailed analysis of the factors influencing inventory levels, such as seasonality, product mix, and supply chain dynamics, can provide a better understanding of the company's inventory management practices.
Peer comparison
Dec 31, 2023