Lumentum Holdings Inc (LITE)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.12 | 4.20 | 5.11 | 6.59 | 2.10 | |
| DOH | days | 88.58 | 86.81 | 71.48 | 55.36 | 174.02 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.12
= 88.58
The days of inventory on hand (DOH) for Lumentum Holdings Inc have shown fluctuations over the past five years. In particular, the trend indicates an increase in DOH from 55.36 days in 2021 to 174.02 days in 2020, which may raise concerns about inventory management efficiency. However, there has been a significant improvement in 2022, with DOH decreasing to 71.48 days, suggesting better control over inventory levels.
In the most recent year, as of June 30, 2024, the DOH stands at 88.58 days, which indicates that the company is holding inventory for approximately 88.58 days before selling it. This suggests a slight increase from the previous year but still remains lower than the levels observed in 2020.
Overall, a lower DOH is typically preferable as it indicates that inventory is turning over more quickly, allowing the company to minimize holding costs and reduce the risk of obsolescence. Lumentum Holdings Inc may benefit from continued efforts to optimize inventory levels to enhance operational efficiency and financial performance.
Peer comparison
Jun 30, 2024