Leggett & Platt Incorporated (LEG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.92 | 4.66 | 4.12 | 4.95 | 5.95 | |
| DOH | days | 61.63 | 78.36 | 88.52 | 73.69 | 61.33 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.92
= 61.63
The days of inventory on hand (DOH) for Leggett & Platt, Inc. has been fluctuating over the past five years.
The trend indicates that the company held inventory for approximately 77.28 days at the end of 2023, which is a slight decrease from the 79.44 days in 2022. This reduction suggests that the company may have become more efficient in managing its inventory levels or experienced an increase in sales relative to the amount of inventory on hand.
Comparing the DOH to earlier years, it is observed that the DOH was higher in 2021 and 2022 at 89.86 days and 79.44 days respectively, which could suggest slower inventory turnover or excess inventory in those years. The lower DOH in 2020 and 2019 at 69.59 days and 62.78 days respectively indicates a quicker inventory turnover rate during those periods.
Overall, the trend in Leggett & Platt, Inc.'s DOH reflects fluctuating inventory management efficiency. It would be essential for the company to continue monitoring its inventory levels to optimize operations and working capital efficiency.
Peer comparison
Dec 31, 2023