Ufp Industries Inc (UFPI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		7.53	8.42	8.09	7.58	7.97	8.20	7.96	7.59	8.05	7.87	7.07	6.26	7.50	7.54	6.11	6.11	7.67	7.54	8.09	7.31
DOH	days	48.49	43.37	45.09	48.16	45.80	44.53	45.85	48.08	45.33	46.37	51.64	58.31	48.64	48.41	59.76	59.78	47.59	48.43	45.13	49.95

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.53
= 48.49

Days of Inventory on Hand (DOH) is an important financial metric that provides insight into how efficiently Ufp Industries Inc manages its inventory levels. A lower DOH indicates that the company is able to sell its inventory quickly, while a higher DOH suggests that inventory is sitting idle for a longer period of time.

Analyzing the historical DOH trend of Ufp Industries Inc from March 31, 2020, to December 31, 2024, we observe some fluctuations in the metric. The DOH ranged from a low of 43.37 days on September 30, 2024, to a high of 59.78 days on March 31, 2021.

Overall, it is noted that the company has maintained its DOH below 50 days for most periods, indicating relatively efficient management of its inventory. The downward trend in DOH towards the latter part of the period suggests improvements in inventory management efficiency, as the company was able to reduce the number of days inventory is held on hand.

However, it is important for Ufp Industries Inc to continue monitoring and optimizing its inventory management processes to ensure that inventory levels are maintained at an optimal level to support business operations and prevent excessive holding costs.