Leggett & Platt Incorporated (LEG)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.03 | 4.72 | 4.59 | 4.06 | 5.25 | |
| DOH | days | 72.57 | 77.28 | 79.44 | 89.86 | 69.59 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.03
= 72.57
The Days of Inventory on Hand (DOH) for Leggett & Platt Incorporated has shown fluctuations over the past five years, ranging from a low of 69.59 days on December 31, 2020, to a high of 89.86 days on December 31, 2021. The trend then saw a decrease to 79.44 days on December 31, 2022, followed by further improvements to 77.28 days on December 31, 2023, and finally settling at 72.57 days on December 31, 2024.
A higher DOH indicates that the company is holding onto its inventory for a longer period before selling it, which could tie up capital and lead to higher storage costs. Conversely, a lower DOH could suggest efficient inventory management, enabling faster turnover and potentially reducing the risk of obsolete inventory.
In summary, Leggett & Platt's DOH has shown variability but has ultimately trended downwards over the observed period, indicating improvements in inventory management efficiency. It would be important to monitor this ratio in conjunction with other financial metrics to assess the overall health and performance of the company.
Peer comparison
Dec 31, 2024