Lennox International Inc (LII)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.06 | 4.91 | 4.56 | 5.88 | 5.90 | |
| DOH | days | 72.07 | 74.31 | 80.04 | 62.04 | 61.83 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.06
= 72.07
The days of inventory on hand (DOH) for Lennox International Inc have shown some fluctuations over the past five years. The trend indicates an increase in DOH from 61.83 days as of December 31, 2020, to 72.07 days as of December 31, 2024.
This suggests that Lennox International Inc is holding onto inventory for a longer period, which could tie up capital and potentially increase holding costs. An increase in DOH could also indicate challenges in managing inventory levels efficiently, which may lead to higher carrying costs and potential obsolescence risks.
It would be important for Lennox International Inc to closely monitor and analyze the factors contributing to the increase in DOH to optimize inventory management practices and ensure efficient use of resources. This analysis could help identify opportunities to streamline inventory processes, improve demand forecasting, and minimize excess inventory levels to enhance overall operational and financial performance.
Peer comparison
Dec 31, 2024