Linde plc Ordinary Shares (LIN)
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 | 11.57 | 11.76 | 12.23 | 13.19 | 13.93 | 15.25 | 14.77 | 13.48 | 13.34 | 13.28 | 12.98 | 12.61 | 12.35 | 11.82 | 12.29 | 12.93 | 10.62 | 8.21 | 5.08 | 2.18 | |
| DOH | days | 31.54 | 31.05 | 29.83 | 27.68 | 26.20 | 23.93 | 24.72 | 27.07 | 27.36 | 27.49 | 28.12 | 28.95 | 29.55 | 30.88 | 29.71 | 28.23 | 34.37 | 44.47 | 71.90 | 167.53 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.57
= 31.54
The days of inventory on hand (DOH) for Linde Plc. have shown a general increasing trend over the past eight quarters, starting at 35.25 days in Q1 2022 and rising to 44.13 days in Q4 2023. This indicates that the company is taking longer to sell its inventory, which may tie up working capital and potentially lead to higher storage and holding costs.
The average DOH over the provided period is 38.85 days, suggesting that, on average, Linde Plc. holds enough inventory to last for about 39 days. Investors and analysts typically prefer lower DOH figures as they indicate more efficient inventory management.
It would be advisable for Linde Plc. to focus on optimizing its inventory management practices to reduce the DOH figure, potentially by improving demand forecasting, streamlining procurement processes, and implementing just-in-time inventory strategies. This could help enhance liquidity, reduce costs, and improve overall operational efficiency.
Peer comparison
Dec 31, 2023
See also:
Linde plc Ordinary Shares Average Inventory Processing Period (Quarterly Data)