Lear Corporation (LEA)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 13.55 12.33 12.91 12.64 12.38 11.92 12.23 11.94 12.38 11.98 11.33 10.90 11.37 10.22 11.61 11.38 11.37 12.36 12.49 13.22
DOH days 26.94 29.60 28.26 28.87 29.49 30.62 29.85 30.58 29.48 30.48 32.22 33.49 32.10 35.72 31.44 32.06 32.09 29.53 29.23 27.61

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.55
= 26.94

Lear Corporation's days of inventory on hand (DOH) has shown some fluctuations over the past few years. The trend indicates that the company has generally been able to manage its inventory efficiently.

From March 31, 2020, to December 31, 2022, the DOH stayed within the range of 27.61 days to 35.72 days, with a slight increase towards the end of this period. This suggests that the company might have experienced some challenges in managing its inventory effectively.

However, from March 31, 2023, to December 31, 2024, the DOH decreased consistently from 30.58 days to 26.94 days. This downward trend signifies an improvement in the company's inventory management, indicating that Lear Corporation may have streamlined its supply chain and inventory control processes during this period.

Overall, the gradual decline in DOH from 2023 to 2024 indicates that Lear Corporation has been successful in reducing the number of days it takes to sell its inventory, which can lead to cost savings and improved liquidity. This trend reflects positively on the company's operational efficiency and financial performance.