US Foods Holding Corp (USFD)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 22.92 | 21.83 | 20.91 | 17.43 | 18.29 | |
| DOH | days | 15.92 | 16.72 | 17.46 | 20.94 | 19.96 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 22.92
= 15.92
Based on the data provided, US Foods Holding Corp's days of inventory on hand (DOH) have shown a declining trend over the past five years. In December 2020, the company had an average of 19.96 days of inventory on hand, which increased slightly to 20.94 days by December 2021. However, from December 2021 to December 2024, there has been a consistent improvement in inventory management efficiency, with DOH decreasing to 17.46 days, 16.72 days, and finally 15.92 days.
The decreasing trend in DOH indicates that US Foods Holding Corp has been able to manage its inventory more effectively, potentially reducing carrying costs and minimizing the risk of obsolete inventory. A lower DOH also suggests that the company is selling its inventory faster, which can lead to improved cash flows and profitability.
Overall, the decreasing trend in US Foods Holding Corp's days of inventory on hand over the five-year period is a positive indicator of the company's efficient inventory management practices.
Peer comparison
Dec 31, 2024