Leidos Holdings Inc (LDOS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		44.01	42.56	42.90	42.78	38.26
DOH	days	8.29	8.58	8.51	8.53	9.54

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 44.01
= 8.29

Days of Inventory on Hand (DOH) is an important efficiency ratio that indicates how quickly a company is able to sell its inventory. In the case of Leidos Holdings Inc, the trend for DOH over the past five years has been consistently decreasing, which is generally considered a positive sign.

In December 31, 2020, Leidos had an average of 9.54 days worth of inventory on hand, which decreased to 8.53 days by December 31, 2021. This reduction continued in the following years, with DOH reaching 8.51 days by December 31, 2022, 8.58 days by December 31, 2023, and finally dropping to 8.29 days by December 31, 2024.

The decreasing trend in DOH for Leidos indicates that the company has been improving its inventory management efficiency over the years. A lower DOH value suggests that inventory turnover is occurring at a faster rate, which can result in cost savings related to inventory storage and reduced risk of inventory obsolescence.

Overall, the decreasing DOH trend for Leidos Holdings Inc is a positive indicator of effective inventory management practices, which can contribute to improved profitability and overall financial performance.