Laboratory Corporation of America Holdings (LH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 19.83 | 25.31 | 23.46 | 23.33 | 23.58 | 19.90 | 22.93 | 24.05 | 26.15 | 25.32 | 23.88 | 22.20 | 21.33 | 21.84 | 24.39 | 33.06 | 33.93 | 34.84 | 36.94 | 34.61 | |
| DOH | days | 18.40 | 14.42 | 15.56 | 15.64 | 15.48 | 18.34 | 15.92 | 15.17 | 13.96 | 14.41 | 15.29 | 16.44 | 17.11 | 16.71 | 14.97 | 11.04 | 10.76 | 10.48 | 9.88 | 10.54 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.83
= 18.40
To analyze Laboratory Corp. Of America Holdings' days of inventory on hand (DOH) over the past eight quarters, we observe a slight increase in DOH from Q1 2022 to Q4 2023, with a fluctuating trend during this period. The DOH ranged from 15.02 days in Q2 2022 to 19.69 days in Q4 2023.
The company's inventory holding period increased gradually from Q1 2022 to Q4 2023, indicating a potential slowdown in inventory turnover efficiency. This could result from factors such as changing demand patterns, supply chain disruptions, or inventory management issues.
Overall, a rising trend in DOH may suggest potential inefficiencies in managing inventory levels, which could tie up working capital and increase storage costs. It is essential for the company to monitor and optimize inventory management to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023