Lear Corporation (LEA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		12.90	12.95	11.89	11.95	15.06
DOH	days	28.29	28.18	30.70	30.56	24.24

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.90
= 28.29

Lear Corp.'s Days of Inventory on Hand (DOH) measures how efficiently the company manages its inventory by indicating the number of days it takes to sell its current inventory. Over the past five years, the trend in DOH has been relatively stable, hovering around 29 to 32 days, with a notable dip to 25.41 days in 2019.

A lower DOH value indicates a faster inventory turnover rate, suggesting that Lear Corp. has been able to sell its inventory more quickly in 2019 compared to the subsequent years. In contrast, the slightly higher DOH values in 2021 and 2020 may imply a slower inventory turnover during those years.

While a lower DOH is generally preferred as it signifies efficient inventory management, it is essential to consider industry norms and the company's specific operations when interpreting this ratio. Further analysis of inventory trends, sales strategies, and market conditions would provide valuable insights into the factors influencing Lear Corp.'s inventory management efficiency over the years.