Laboratory Corporation of America Holdings (LH)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 19.03 | 18.97 | 20.35 | 18.71 | 18.53 | 23.97 | 22.20 | 22.05 | 23.58 | 19.90 | 22.93 | 24.05 | 26.15 | 25.32 | 23.88 | 22.20 | 21.33 | 21.84 | 24.39 | 33.06 | |
| DOH | days | 19.18 | 19.24 | 17.93 | 19.51 | 19.69 | 15.23 | 16.44 | 16.55 | 15.48 | 18.34 | 15.92 | 15.17 | 13.96 | 14.41 | 15.29 | 16.44 | 17.11 | 16.71 | 14.97 | 11.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.03
= 19.18
The days of inventory on hand (DOH) for Laboratory Corporation of America Holdings have shown some fluctuations over the analyzed period from March 31, 2020, to December 31, 2024.
The DOH increased from 11.04 days on March 31, 2020, to a peak of 19.69 days on December 31, 2023, before slightly declining to 19.18 days on December 31, 2024.
The trend indicates that the company's ability to manage its inventory improved initially, as the DOH decreased, but then deteriorated in later periods. A high DOH can suggest either overstocking, slow-moving inventory, or potential inefficiencies in inventory management.
Further analysis of the reasons behind the fluctuations in DOH could provide insights into the company's inventory management practices, supply chain efficiency, and overall operational effectiveness. Monitoring and managing the DOH effectively can help optimize working capital, improve cash flow, and enhance overall operational performance.
Peer comparison
Dec 31, 2024