Interface Inc (TILE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.20 | 2.94 | 2.81 | 2.90 | 3.03 | |
| DOH | days | 114.22 | 124.16 | 129.98 | 126.04 | 120.52 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.20
= 114.22
Interface Inc's days of inventory on hand (DOH) have been gradually increasing over the past five years. The trend shows an increase from 120.52 days as of December 31, 2020, to 126.04 days as of December 31, 2021, and further to 129.98 days as of December 31, 2022. However, there was a slight decrease to 124.16 days as of December 31, 2023, before a notable drop to 114.22 days as of December 31, 2024.
The increasing DOH figures suggest that Interface Inc may be carrying excess inventory relative to its sales, which could indicate potential inefficiencies in inventory management. The drop in DOH in the most recent year may reflect efforts by the company to optimize its inventory levels.
It is important for Interface Inc to carefully monitor and manage its inventory levels to ensure efficient operations and minimize carrying costs. Further analysis of the factors influencing inventory levels and sales trends would provide a better understanding of the company's performance in this area.
Peer comparison
Dec 31, 2024