Leidos Holdings Inc (LDOS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		42.56	42.90	42.78	38.26	132.58
DOH	days	8.58	8.51	8.53	9.54	2.75

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 42.56
= 8.58

Leidos Holdings Inc's days of inventory on hand (DOH) has been relatively stable over the past five years based on the provided data. The company maintained an average DOH of around 8.58 days in 2023, slightly higher than the levels observed in the previous two years of 8.51 days in 2022 and 8.53 days in 2021.

However, it is worth noting that the DOH was significantly higher at 9.54 days in 2020 compared to the other years. This suggests that in 2020, Leidos may have had a slower inventory turnover rate or faced challenges in managing its inventory efficiently.

On the other hand, the lowest DOH observed was 2.75 days in 2019, indicating that Leidos had a much faster inventory turnover rate in that year. This drastic decrease in DOH from 2019 to 2020 indicates a notable shift in how the company managed its inventory levels during that period.

Overall, Leidos Holdings Inc's DOH indicates that the company has generally been effective in managing its inventory levels; however, fluctuations in the ratio over the years may require further investigation to understand the underlying reasons and implications for the company's operations and financial performance.