Lancaster Colony Corporation (LANC)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.67 | 10.65 | 10.88 | 10.62 | 13.68 | |
| DOH | days | 37.75 | 34.26 | 33.53 | 34.38 | 26.67 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.67
= 37.75
Lancaster Colony Corporation's days of inventory on hand (DOH) has exhibited fluctuations over the past five years. The company's DOH increased from 26.67 days in 2020 to 34.38 days in 2021, before decreasing slightly to 33.53 days in 2022. Subsequently, the DOH rose to 34.26 days in 2023 and further increased to 37.75 days in 2024.
The upward trend in DOH from 2020 to 2024 suggests that Lancaster Colony Corporation may be holding its inventory for a longer period before selling it. This could indicate potential challenges in inventory management, such as overstocking or slowing sales. A higher DOH figure may tie up working capital in inventory and increase holding costs, impacting the company's overall profitability and liquidity.
Analyzing the changes in DOH over time can help stakeholders assess the efficiency of Lancaster Colony Corporation's inventory management practices and identify areas for improvement to optimize working capital utilization and enhance operational performance.
Peer comparison
Jun 30, 2024