LGI Homes (LGIH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.69 | 0.67 | 1.07 | 1.12 | 0.93 | |
| DOH | days | 525.52 | 547.26 | 341.09 | 324.60 | 390.50 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.69
= 525.52
The days of inventory on hand (DOH) ratio for LGI Homes Inc has shown fluctuations over the past five years. In 2023, the company had 624.48 days of inventory on hand, a slight decrease from 638.10 days in 2022. This indicates that the company had inventory that would last for approximately 624 days at the current rate of sales. Compared to 2021, the DOH ratio has increased significantly, as the company had 341.09 days of inventory on hand in that year.
Looking further back, in 2020 the DOH ratio was 324.60 days, and in 2019 it was 390.50 days. The fluctuations in the DOH ratio suggest possible changes in inventory management practices or sales trends within LGI Homes Inc. It is important for the company to closely monitor its inventory levels to ensure optimal efficiency and minimize carrying costs associated with excess inventory.
Peer comparison
Dec 31, 2023