Lincoln Electric Holdings Inc (LECO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.66 | 4.82 | 3.73 | 4.01 | 4.68 | |
| DOH | days | 78.31 | 75.70 | 97.92 | 91.00 | 78.00 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.66
= 78.31
The days of inventory on hand (DOH) for Lincoln Electric Holdings Inc have shown variations over the years:
1. As of December 31, 2020, the company had an inventory level equivalent to 78.00 days of sales.
2. By December 31, 2021, the DOH had increased to 91.00 days, indicating a longer time period for the company to sell its existing inventory.
3. A further increase was observed by December 31, 2022, with DOH reaching 97.92 days, suggesting a potential buildup of inventory relative to sales volume.
4. However, the trend reversed by December 31, 2023, as the DOH dropped to 75.70 days, signifying a more efficient management of inventory.
5. Subsequently, by December 31, 2024, the DOH slightly increased to 78.31 days, remaining relatively stable compared to the previous year.
Overall, the analysis indicates fluctuations in the days of inventory on hand for Lincoln Electric Holdings Inc, which can reflect changes in inventory management strategies, production levels, or demand fluctuations in the market. This metric is crucial for assessing the company's efficiency in managing its inventory levels and optimizing working capital.
Peer comparison
Dec 31, 2024