Lennox International Inc (LII)
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 | 5.06 | 5.05 | 4.39 | 4.13 | 4.91 | 4.60 | 3.99 | 3.80 | 4.56 | 4.49 | 4.60 | 4.53 | 5.88 | 6.36 | 6.69 | 5.40 | 5.90 | 6.34 | 5.19 | 4.41 | |
| DOH | days | 72.07 | 72.29 | 83.15 | 88.43 | 74.30 | 79.29 | 91.47 | 96.17 | 80.04 | 81.33 | 79.26 | 80.54 | 62.04 | 57.37 | 54.60 | 67.65 | 61.83 | 57.54 | 70.27 | 82.80 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.06
= 72.07
The Days of Inventory on Hand (DOH) for Lennox International Inc over the past few years have shown some fluctuations. As of December 31, 2024, the DOH stood at 72.07 days, indicating the number of days it takes for the company to sell its inventory. This figure was a decrease from the previous quarter, when it was 72.29 days on September 30, 2024.
A lower DOH implies that the company is managing its inventory more efficiently by turning over its inventory quicker, which can lead to lower holding costs and potentially higher profitability. Conversely, a higher DOH may suggest overstocking or slow-moving inventory, which can tie up working capital and increase carrying costs.
The trend in Lennox International Inc's DOH over the quarters has been somewhat variable, with some quarters showing a decrease in DOH while others have seen an increase. It is important for the company to monitor its inventory levels closely to ensure they are in line with sales volumes and market demand. Additionally, comparing the DOH to industry benchmarks can provide valuable insights into the company's inventory management efficiency and competitiveness.
Peer comparison
Dec 31, 2024