Interface Inc (TILE)
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 | Jul 5, 2020 | Apr 5, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.86 | 2.73 | 2.81 | 2.62 | 2.87 | 3.72 | 3.68 | 3.52 | 4.16 | 4.09 | 2.96 | 2.08 | 1.70 | 0.52 | 1.64 | 2.74 | 3.57 | 3.49 | 3.39 | 2.15 | |
| DOH | days | 94.60 | 133.51 | 129.76 | 139.48 | 127.05 | 98.14 | 99.14 | 103.60 | 87.81 | 89.33 | 123.16 | 175.74 | 215.22 | 697.57 | 222.36 | 133.33 | 102.35 | 104.64 | 107.54 | 170.03 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.86
= 94.60
Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory by indicating the number of days it takes for the company to sell its entire inventory. A lower DOH indicates more efficient inventory management.
In the case of Interface Inc., we observe fluctuations in its DOH over the past eight quarters. In Q4 2023, the company had a DOH of 124.16 days, slightly lower than the previous quarter's 124.45 days. This suggests that Interface Inc. was able to manage its inventory slightly more efficiently in the most recent quarter.
Comparing the current DOH values to those of earlier quarters, we observe a general trend of decreasing DOH from Q1 2022 to Q4 2023. This indicates an improvement in inventory management over the past year and a half. However, it is worth noting that the DOH values still remain quite high, suggesting that Interface Inc. may still have room for further improvement in optimizing its inventory levels and turnover.
Overall, the trend of decreasing DOH is a positive sign of improving inventory management efficiency at Interface Inc. However, the company should continue to monitor and work towards reducing this metric further to enhance its operational performance and profitability.
Peer comparison
Dec 31, 2023