Lincoln Electric Holdings Inc (LECO)
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 | 4.66 | 4.20 | 4.47 | 4.68 | 4.84 | 4.35 | 3.88 | 3.87 | 3.73 | 3.84 | 3.66 | 3.76 | 4.01 | 3.93 | 4.13 | 4.38 | 4.68 | 4.58 | 4.44 | 4.92 | |
| DOH | days | 78.31 | 86.98 | 81.63 | 77.99 | 75.36 | 83.97 | 94.01 | 94.43 | 97.92 | 95.02 | 99.66 | 96.95 | 91.00 | 92.99 | 88.34 | 83.29 | 78.00 | 79.68 | 82.21 | 74.18 |
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 has shown fluctuations over the periods reported. The trend indicates a general increase in DOH from March 2020 to June 2022, followed by some fluctuations in the subsequent periods.
DOH increased steadily from 74.18 days as of March 31, 2020, to a peak of 99.66 days on June 30, 2022. This suggests that Lincoln Electric Holdings Inc was carrying more inventory relative to its sales during this period, which could indicate potential inefficiencies in inventory management or slower inventory turnover.
Subsequently, DOH experienced some variation, with values ranging between 83.97 days as of September 30, 2023, and 97.92 days as of December 31, 2022. The decrease in DOH towards the end of 2023 and the first half of 2024 could suggest improvements in inventory management efficiency or an alignment of inventory levels with sales demand.
Overall, fluctuations in DOH can be influenced by various factors such as changes in sales volume, seasonality, production efficiency, and supply chain disruptions. It is essential for Lincoln Electric Holdings Inc to continuously monitor and optimize its inventory management processes to ensure optimal utilization of resources and maintain a healthy balance between inventory levels and operational efficiency.
Peer comparison
Dec 31, 2024