US Foods Holding Corp (USFD)

Activity ratios

Short-term

Turnover ratios

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 22.92 22.61 22.61 21.82 21.82 21.85 22.46 21.15 20.90 18.71 17.85 16.90 17.42 17.84 16.63 15.88 18.25 17.22 17.41 17.40
Receivables turnover 19.31 18.00 18.44 18.14 19.02 18.34 18.97 — 19.89 — — — 19.91 — — — — — — —
Payables turnover 16.70 15.27 15.33 15.55 17.02 15.37 16.09 16.11 18.21 15.12 15.52 14.86 17.67 14.22 13.63 13.29 19.08 14.66 12.12 19.10
Working capital turnover 55.73 57.44 37.64 35.81 38.36 36.41 33.55 33.13 33.01 29.21 28.90 30.14 28.02 20.06 18.38 14.92 15.27 16.36 14.23 13.74

Based on the provided data for US Foods Holding Corp, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory. Over the period from March 31, 2020, to December 31, 2024, the ratio ranged between 15.88 and 22.92 times. The increasing trend from 2020 to 2024 indicates that the company was able to sell through its inventory more frequently, which is generally a positive sign.

2. Receivables Turnover:
- The receivables turnover ratio reflects how effectively the company is collecting outstanding receivables. The company did not provide data for the earlier periods, but starting from December 31, 2021, the ratio ranged from 18.00 to 19.31 times. A higher turnover indicates that the company is collecting its receivables more quickly.

3. Payables Turnover:
- The payables turnover ratio demonstrates how efficiently the company is managing its payments to suppliers. From March 31, 2020, to December 31, 2024, the ratio ranged between 12.12 and 19.08 times. The company seems to have improved its payment efficiency as the ratio generally increased over the years.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively the company is utilizing its working capital to generate sales. From March 31, 2020, to December 31, 2024, the ratio increased significantly from 13.74 to 55.73 times. A rising trend indicates that the company is generating more revenue from its working capital, reflecting improved efficiency in its operations.

In summary, based on the activity ratios analysis, US Foods Holding Corp seems to have improved its inventory management, collection of receivables, payment to suppliers, and utilization of working capital over the analyzed period, which is generally positive for the company's operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 15.93 16.14 16.15 16.73 16.72 16.70 16.25 17.25 17.46 19.51 20.45 21.60 20.95 20.46 21.94 22.99 20.00 21.20 20.96 20.98
Days of sales outstanding (DSO) days 18.90 20.28 19.79 20.12 19.20 19.91 19.25 — 18.35 — — — 18.33 — — — — — — —
Number of days of payables days 21.85 23.90 23.81 23.47 21.44 23.75 22.68 22.66 20.04 24.15 23.52 24.57 20.66 25.66 26.78 27.46 19.13 24.90 30.12 19.11

The Days of Inventory on Hand (DOH) for US Foods Holding Corp have shown a decreasing trend from 20.98 days as of March 31, 2020, to 15.93 days as of December 31, 2024. This indicates that the company has been able to manage its inventory more efficiently over the years.

In terms of Days of Sales Outstanding (DSO), the company had no information available until December 31, 2021, where it recorded 18.33 days. Subsequently, there was an increase in DSO to 20.28 days as of September 30, 2024. This rise may suggest the company is taking longer to collect payments from its customers.

The Number of Days of Payables for US Foods Holding Corp ranged from 19.11 days on March 31, 2020, to 21.85 days on December 31, 2024, with fluctuations observed over the period. Generally, a higher number of days of payables may indicate that the company is taking longer to pay its suppliers.

Overall, the activity ratios for US Foods Holding Corp reflect varying trends in inventory management efficiency, collection of receivables, and payment of payables, which are important factors to monitor for assessing the company's operational performance and working capital management.

Long-term

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
Fixed asset turnover 15.76 15.76 15.45 15.49 15.46 15.93 15.96 15.90 15.57 15.88 15.59 15.22 14.39 13.96 13.00 11.36 11.21 11.41 11.39 12.38
Total asset turnover 2.81 2.76 2.66 2.66 2.67 2.63 2.66 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

The fixed asset turnover ratio for US Foods Holding Corp has shown a consistent upward trend over the analyzed period from March 31, 2020, to December 31, 2024, increasing from 12.38 to 15.76. This indicates that the company has been efficiently utilizing its fixed assets to generate revenue, with a peak observed in September 30, 2024.

In comparison, the total asset turnover ratio has also shown a positive trend, rising from 2.17 on March 31, 2020, to 2.81 on December 31, 2024. This metric reflects the company's ability to generate sales relative to its total assets, with a steady increase over the period analyzed.

Overall, both ratios suggest that US Foods Holding Corp has been effectively managing its assets to drive revenue growth and optimize operational efficiency over the years, as evidenced by the increasing asset turnover ratios.