US Foods Holding Corp (USFD)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 19.06 18.38 19.01 — 19.89 — — — 19.91 — — — — — — — — — — —
Payables turnover 16.41 14.81 15.50 15.52 18.21 15.12 15.52 14.86 17.67 14.22 13.63 13.29 19.08 14.66 12.12 19.10 16.65 14.31 15.10 14.91
Working capital turnover 38.45 36.49 33.62 33.21 33.01 29.21 28.90 30.14 28.02 20.06 18.38 14.92 15.27 16.36 14.23 13.74 28.62 24.53 29.66 35.03

The activity ratios of US Foods Holding Corp show the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover has been consistently high, averaging around 18 to 21 times per year. This indicates that US Foods Holding Corp is efficiently managing its inventory and quickly turning over its stock.

2. Receivables turnover has also been relatively high, ranging from 18 to 20 times per year, except for a missing data point. This suggests that the company is effective in collecting payments from its customers in a timely manner.

3. Payables turnover has shown some fluctuations but generally indicates that the company is paying its suppliers in a timely manner, with an average turnover of around 15 to 16 times per year.

4. Working capital turnover has been on a decreasing trend, ranging from around 13 to 38 times per year. This ratio shows how efficiently the company is utilizing its working capital to generate revenue, with higher numbers indicating better efficiency.

Overall, the activity ratios of US Foods Holding Corp reflect a generally efficient management of inventory, receivables, payables, and working capital, which is crucial for maintaining a healthy financial position and sustainable operations.

Average number of days

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
Days of inventory on hand (DOH) days 17.35 17.33 16.87 17.91 17.46 19.51 20.45 21.60 20.95 20.46 21.94 22.99 20.00 21.20 20.96 20.98 21.51 22.76 20.11 20.29
Days of sales outstanding (DSO) days 19.15 19.86 19.20 — 18.35 — — — 18.33 — — — — — — — — — — —
Number of days of payables days 22.24 24.64 23.54 23.52 20.04 24.15 23.52 24.57 20.66 25.66 26.78 27.46 19.13 24.90 30.12 19.11 21.93 25.50 24.18 24.47

US Foods Holding Corp's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, and payables.

Days of inventory on hand (DOH) decreased slightly from 17.46 days in Q4 2022 to 17.35 days in Q4 2023, indicating a relatively quick turnover of inventory held by the company during the period.

Days of sales outstanding (DSO) stood at 18.35 days in Q4 2022, implying the average number of days it takes for the company to collect revenue from its sales. However, DSO data was not available for the subsequent periods, making it difficult to ascertain any trend in the collection of receivables.

Number of days of payables went up from 20.04 days in Q4 2022 to 22.24 days in Q4 2023, showcasing a lengthening payment period for the company's trade payables. This could imply improved liquidity but may also indicate potential delays in settling accounts with suppliers.

Overall, US Foods Holding Corp's activity ratios suggest a stable inventory turnover, while the management of receivables and payables warrants close monitoring to ensure optimal efficiency in the company's working capital management.

Long-term

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
Fixed asset turnover 15.50 15.97 16.00 15.93 15.57 15.88 15.59 15.22 14.39 13.96 13.00 11.36 11.21 11.41 11.39 12.38 12.41 12.26 13.34 16.42
Total asset turnover 2.68 2.63 2.67 2.65 2.65 2.49 2.45 2.37 2.34 2.12 1.97 1.74 1.82 1.83 1.78 2.17 2.28 2.16 2.62 3.23

US Foods Holding Corp's long-term activity ratios provide insights into the efficiency of the company in utilizing its fixed assets and total assets to generate sales revenue.

The fixed asset turnover ratio has shown a generally increasing trend over the periods, indicating that the company is becoming more efficient in generating sales revenue from its fixed assets. This suggests that the company is effectively utilizing its investment in fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated over the periods but generally shows an increasing trend. This implies that the company is efficiently utilizing its total assets to generate sales revenue. However, it is important to note that the total asset turnover is lower than the fixed asset turnover, which may indicate that the company relies more on fixed assets for generating sales.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that US Foods Holding Corp is becoming more efficient in utilizing its assets to generate sales revenue over time.