US Foods Holding Corp (USFD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 21.83 | 20.91 | 17.43 | 18.29 | 17.85 | |
| DOH | days | 16.72 | 17.46 | 20.94 | 19.96 | 20.45 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.83
= 16.72
The days of inventory on hand (DOH) for US Foods Holding Corp has shown a decreasing trend over the past five years, from 20.45 days in 2019 to 16.72 days in 2023. This indicates that the company has been more efficient in managing its inventory levels and turning inventory into sales in a shorter period.
A declining DOH ratio typically suggests that the company is effectively managing its inventory levels by either improving inventory control processes, optimizing supply chain management, or adjusting procurement practices to match demand more accurately. It also implies a reduced risk of obsolete or excess inventory, leading to potential cost savings and improved cash flow.
Overall, the decreasing trend in DOH is a positive sign of operational efficiency and effective inventory management within US Foods Holding Corp. It is important for the company to continue monitoring and optimizing its inventory levels to maintain this positive trajectory and enhance overall financial performance.
Peer comparison
Dec 31, 2023