Lumentum Holdings Inc (LITE)

The analysis of Lumentum Holdings Inc.'s days of inventory on hand (DOH) over the specified period reveals a consistent upward trend, indicating an increase in the number of days inventory remains in stock before it is sold. As of June 30, 2021, the DOH was approximately 74.70 days, reflecting a relatively efficient inventory turnover at that time. By June 30, 2022, this figure increased substantially to 98.79 days, suggesting a slowdown in inventory turnover or an accumulation of inventory.

The trend continued into 2023, with the DOH reaching approximately 124.49 days as of June 30, 2023. This represents a significant escalation and indicates that inventory is being held for an increasingly longer period, potentially due to changes in production cycles, demand fluctuations, or strategic inventory buildup. The upward trajectory persisted into 2024, with the DOH rising to approximately 131.28 days, and further extended to roughly 144.79 days by June 30, 2025.

This sustained increase in DOH over the four-year span signifies a notable shift towards higher inventory levels relative to sales. While longer inventory periods can sometimes be justified by industry-specific factors or strategic initiatives, such as buffer stock or accommodating expected demand growth, they can also indicate potential issues with inventory management efficiency or oversupply. Continual monitoring of associated financial and operational metrics is recommended to assess whether the increased DOH aligns with the company's strategic objectives or poses risks such as increased holding costs or inventory obsolescence.

Peer comparison

Jun 30, 2025