Lennox International Inc (LII)
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 | 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 | 5.01 | 4.63 | 4.29 | 4.58 | |
| DOH | days | 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 | 72.81 | 78.85 | 85.10 | 79.65 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.91
= 74.30
Lennox International Inc's Days of Inventory on Hand (DOH) has shown some fluctuations over the past eight quarters. In Q1 2023, the company had 96.17 days of inventory on hand, which was higher compared to Q4 2023 where the DOH decreased to 74.31 days. This reduction indicates a potentially more efficient management of inventory in the most recent quarter.
Looking back at the trend over the past two years, the DOH has varied between a high of 96.17 days in Q1 2023 and a low of 74.31 days in Q4 2023. Generally, there seems to be a seasonal pattern in the DOH, with the highest levels typically seen in Q1 and the lowest in Q4.
It is important for Lennox International Inc to carefully monitor and manage its inventory levels to ensure optimal inventory turnover and minimize carrying costs. A lower DOH indicates that the company is selling its inventory more quickly, while a higher DOH may indicate inefficiencies in inventory management that could tie up working capital and lead to potential obsolescence risks.
Peer comparison
Dec 31, 2023