US Foods Holding Corp (USFD)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 33,662,000 | 33,311,000 | 33,134,000 | 33,120,000 | 33,781,000 | 32,952,000 | 31,998,000 | 30,861,000 | 29,369,000 | 27,920,000 | 25,947,000 | 23,038,000 | 23,238,000 | 22,621,000 | 23,192,000 | 24,809,000 | 24,304,000 | 23,547,000 | 23,172,940 | 22,877,460 |
| Inventory | US$ in thousands | 1,600,000 | 1,582,000 | 1,531,000 | 1,625,000 | 1,616,000 | 1,761,000 | 1,793,000 | 1,826,000 | 1,686,000 | 1,565,000 | 1,560,000 | 1,451,000 | 1,273,000 | 1,314,000 | 1,332,000 | 1,426,000 | 1,432,000 | 1,468,000 | 1,277,000 | 1,272,000 |
| Inventory turnover | 21.04 | 21.06 | 21.64 | 20.38 | 20.90 | 18.71 | 17.85 | 16.90 | 17.42 | 17.84 | 16.63 | 15.88 | 18.25 | 17.22 | 17.41 | 17.40 | 16.97 | 16.04 | 18.15 | 17.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $33,662,000K ÷ $1,600,000K
= 21.04
US Foods Holding Corp's inventory turnover ratio has shown a consistent and positive trend over the past few years. The ratio has been steadily increasing since the end of 2019, indicating that the company is effectively managing its inventory levels and turning over its inventory more frequently.
The inventory turnover ratios have ranged from 15.88 to 21.64 over the past two years, with the latest ratio as of December 31, 2023, being 21.04. This implies that the company is selling and replenishing its inventory approximately 21 times a year, which is a positive sign of efficiency in managing its inventory.
A higher inventory turnover ratio generally indicates that a company is able to sell its products quickly and efficiently, minimizing the risk of holding excess or obsolete inventory. US Foods Holding Corp's consistent improvement in inventory turnover suggests effective inventory management practices, potentially leading to reduced carrying costs and improved cash flow.
Overall, the upward trend in the inventory turnover ratio for US Foods Holding Corp reflects positively on the company's operational efficiency and its ability to meet customer demand while effectively managing its inventory levels.
Peer comparison
Dec 31, 2023
Dec 31, 2023