Laboratory Corporation of America Holdings (LH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 18.53 | 17.33 | 26.15 | 21.33 | 33.93 | |
| DOH | days | 19.69 | 21.06 | 13.96 | 17.11 | 10.76 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.53
= 19.69
The days of inventory on hand (DOH) for Laboratory Corp. Of America Holdings have fluctuated over the past five years. In 2023, the DOH increased to 19.69 days from 16.37 days in 2022, indicating that the company held inventory for a longer period before selling it. This could be due to factors such as changes in demand, procurement processes, or inventory management strategies.
Comparing 2023 to 2021, there was a significant increase in DOH from 13.96 days to 19.69 days, suggesting a notable shift in inventory management practices. It is essential for the company to assess the reasons behind this increase and consider optimizing their inventory levels to improve operational efficiency and liquidity.
Furthermore, the DOH was slightly higher in 2023 compared to 2020, where it was at 17.11 days. This could indicate potential challenges in inventory turnover or supply chain disruptions that impacted the company's ability to efficiently manage its inventory levels.
In contrast, the DOH was lower in 2019 at 10.76 days, indicating a more efficient inventory management process compared to the following years. Overall, the trend in DOH for Laboratory Corp. Of America Holdings highlights the importance of monitoring inventory turnover and implementing effective inventory management strategies to optimize working capital and overall operational performance.
Peer comparison
Dec 31, 2023