Lincoln Electric Holdings Inc (LECO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.22 | 3.73 | 4.01 | 4.68 | 5.07 | |
| DOH | days | 58.70 | 97.92 | 91.00 | 78.00 | 72.01 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.22
= 58.70
The days of inventory on hand (DOH) for Lincoln Electric Holdings, Inc. over the past five years have shown some fluctuations. As of December 31, 2023, the company had 75.36 days of inventory on hand, which is lower than the levels seen in the two preceding years. This may suggest that the company managed its inventory more efficiently in the most recent year.
Comparing this to the previous years, in 2022, the DOH was significantly higher at 97.92 days, indicating that the company held inventory for a longer period compared to 2023. However, the DOH in 2021 was 91.00 days, slightly lower than in 2022 but still higher than the most recent year.
Looking further back, in 2020, the DOH was 78.00 days, which was lower than both 2021 and 2022 but higher compared to 2023. In 2019, the DOH was 72.01 days, which was slightly lower than in 2020 and relatively close to the most recent year.
Overall, the trend in DOH for Lincoln Electric Holdings, Inc. suggests some variability over the five-year period, with fluctuations in inventory management practices. The decreasing trend in the most recent period may indicate efforts to improve inventory turnover and operational efficiency within the company. Analyzing inventory turnover ratios along with DOH can provide further insights into the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2023