Lennar Corporation (LEN)
Days of inventory on hand (DOH)
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 0.02 | 0.02 | 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 | |
| DOH | days | — | 17,115.62 | 18,642.88 | 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 |
November 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
Lennar Corporation's days of inventory on hand (DOH) has shown significant fluctuations over the periods analyzed. The DOH reflects the number of days it takes for the company to sell its entire inventory stock.
Between February 29, 2020, and August 31, 2021, Lennar's DOH decreased steadily from 374.11 days to 1,257.00 days, indicating an improvement in inventory management efficiency. However, this trend was disrupted by a sharp increase in DOH to 15,800.21 days by February 28, 2022, and continued to rise in the following quarters.
The spike observed in DOH in 2022 and 2023 suggests potential issues with inventory management, such as overstocking or difficulties in selling products. The sudden decrease in DOH by May 31, 2023, followed by gradual declines in the subsequent periods, demonstrates corrective actions taken by the company to address these challenges.
By November 30, 2024, Lennar's DOH had decreased to 17,115.62 days, indicating a concerted effort to optimize inventory levels. Overall, the analysis of Lennar Corporation's DOH highlights the importance of closely monitoring and managing inventory levels to ensure operational efficiency and financial performance.
Peer comparison
Nov 30, 2024