Leidos Holdings Inc (LDOS)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	13,194,000	12,985,000	12,746,000	12,534,000	12,312,000	12,119,000	11,966,000	11,857,000	11,723,000	11,501,000	11,333,000	10,914,000	10,560,000	10,326,000	10,002,000	9,819,000	9,546,000	9,297,000	9,021,000	8,825,000
Inventory	US$ in thousands	310,000	295,000	310,000	300,000	287,000	286,000	286,000	279,000	274,000	268,000	251,000	268,000	276,000	292,000	294,000	—	72,000	—	—	—
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	—	—	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,194,000K ÷ $310,000K
= 42.56

Leidos Holdings Inc has demonstrated a consistent and relatively high inventory turnover ratio over the past few quarters. The inventory turnover ratio measures how efficiently a company is managing its inventory by showing how many times a company's inventory is sold and replaced within a specific period.

For Leidos Holdings Inc, the inventory turnover ratio ranged from 34.02 to 45.15 over the past year, indicating that the company is effectively managing its inventory. A high inventory turnover ratio suggests that the company is quickly selling its products and replenishing its stock, which can help reduce holding costs and minimize the risk of obsolescence.

The company's most recent inventory turnover ratios are strong, with figures above 40 in all reported quarters. This consistent performance suggests the company has efficient inventory management practices in place, helping to optimize working capital and improve overall financial performance.

Overall, Leidos Holdings Inc's inventory turnover ratios indicate a healthy operation with efficient inventory management practices, which is essential for maintaining profitability and sustainable growth in the long term.