Leidos Holdings Inc (LDOS)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		42.56	44.02	41.12	41.78	42.90	42.37	41.84	42.50	42.78	42.91	45.15	40.72	38.26	35.36	34.02	—	132.58	—	—	—
DOH	days	8.58	8.29	8.88	8.74	8.51	8.61	8.72	8.59	8.53	8.51	8.08	8.96	9.54	10.32	10.73	—	2.75	—	—	—

December 31, 2023 calculation

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

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days a company takes to sell its average inventory. A lower DOH generally indicates better inventory management and faster turnover of inventory.

Analyzing the trend of Leidos Holdings Inc's DOH over time, we observe a relatively stable range with some fluctuations. From December 2019 to March 2021, the DOH increased steadily from 2.75 days to 10.32 days, suggesting a slower inventory turnover rate. This increase may be due to factors such as changing demand patterns, production delays, or ineffective inventory management.

Subsequently, there was a slight decrease in DOH to 8.08 days in June 2021, followed by fluctuations in the range of 8.08 to 9.54 days until March 2023. This indicates that the company may have made efforts to optimize its inventory levels and improve its efficiency in managing inventory.

Overall, Leidos Holdings Inc's DOH trend points to a need for continued monitoring and potential adjustments in inventory management practices to ensure optimal levels that support the company's operations and financial performance.