Lennar Corporation (LEN)
Days of inventory on hand (DOH)
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 1.05 | 1.00 | |
| DOH | days | — | — | — | 348.22 | 366.42 |
November 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The days of inventory on hand (DOH) ratio measures the number of days it takes for a company to sell its entire inventory. A lower DOH indicates that the company is selling its inventory more quickly, which can be a positive sign of efficiency.
Analyzing the trend of Lennar Corp.'s DOH ratio over the past five years reveals a consistent improvement in inventory management. The DOH has decreased from 333.47 days in 2019 to 243.80 days in 2023. This suggests that Lennar Corp. has been able to more efficiently sell its inventory over time, which can indicate improved operational efficiency and inventory management.
A decreasing trend in the DOH ratio is generally positive, as it implies that the company is managing its inventory more effectively. It may also indicate that the company is avoiding excess inventory, which can tie up capital and lead to potential obsolescence or markdowns.
Overall, the decreasing trend in Lennar Corp.'s DOH ratio suggests improved efficiency in inventory management, potentially leading to better cash flow and profitability. However, it's important to consider other factors such as industry norms and specific business strategies when interpreting this ratio.
Peer comparison
Nov 30, 2023