Lennar Corporation (LEN)
Days of inventory on hand (DOH)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.02 | — | 0.03 | 0.03 | 0.03 | — | 0.02 | 0.02 | 0.02 | — | 0.29 | 0.55 | 0.80 | 1.05 | 1.02 | 1.02 | 0.98 | 1.00 | 0.92 | 0.93 | |
| DOH | days | 20,366.19 | — | 12,180.66 | 11,954.73 | 12,284.89 | — | 16,321.95 | 16,447.68 | 15,800.21 | — | 1,257.00 | 668.24 | 454.94 | 348.22 | 356.85 | 359.17 | 374.11 | 366.42 | 396.34 | 392.35 |
February 29, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.02
= 20,366.19
The days of inventory on hand (DOH) for Lennar Corporation has shown fluctuations over the past several quarters.
From May 2019 to February 2020, the company's DOH was relatively stable, ranging between 356.85 to 396.34 days. This indicates that Lennar was able to manage its inventory levels efficiently during this period.
However, there was a significant increase in inventory holding period from May 2020 to February 2022, with DOH exceeding 12,000 days. This suggests that Lennar may have been facing challenges in managing its inventory during this time, possibly due to excess inventory levels or slower sales.
The DOH showed improvement from February 2022 to August 2023, with the company successfully reducing its inventory holding period to around 12,000 days. This indicates that Lennar took measures to better control its inventory levels during this period.
The most recent data point shows a substantial increase in DOH to over 20,000 days as of February 2024. This sharp increase may raise concerns about Lennar's inventory management practices and its ability to efficiently convert inventory into sales.
Overall, Lennar Corporation's DOH has displayed volatility and inconsistency in recent periods, suggesting the need for the company to focus on optimizing its inventory management processes to enhance operational efficiency and profitability.
Peer comparison
Feb 29, 2024