Lithia Motors Inc (LAD)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.17	7.70	8.88	4.99	5.01
DOH	days	59.16	47.39	41.10	73.19	72.92

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.17
= 59.16

The days of inventory on hand (DOH) for Lithia Motors, Inc. have fluctuated over the past five years, reflecting variations in the management of inventory levels. In 2023, the company held inventory for an average of 67.22 days, which indicates an increase from the previous year. This could suggest that inventory turnover slowed compared to 2022.

Comparing the DOH figures to 2021 and 2020, where the company maintained 46.88 days and 83.49 days of inventory on hand, respectively, it is evident that there has been some variability in inventory management efficiency during these years.

In 2019, the DOH was 82.87 days, which was similar to the figure for 2020. This suggests that in both years, the company held inventory for a longer period compared to the more recent years.

Overall, fluctuations in the DOH metric may indicate changing trends in inventory management practices at Lithia Motors, Inc., reflecting potential adjustments in purchasing, sales, or production processes. Further analysis and trend monitoring will be beneficial to assess the effectiveness of the company's inventory management strategies.