LKQ Corporation (LKQ)

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		2.66	2.66	2.84	2.77	2.75	2.93	2.96	3.06	2.97	3.15	3.15	2.98	2.91	3.15	3.13	2.78	2.76	2.97	2.89	2.80
DOH	days	137.40	137.35	128.47	132.00	132.67	124.74	123.45	119.17	122.70	115.88	116.04	122.56	125.26	116.02	116.59	131.44	132.22	122.70	126.29	130.54

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.66
= 137.40

The days of inventory on hand (DOH) for LKQ Corp over the past eight quarters has shown a fluctuating trend, ranging from 119.18 days to 137.40 days. In Q4 2023 and Q3 2023, the DOH remained relatively stable at 137.40 days and 137.35 days, respectively. This indicates that LKQ Corp held its inventory for approximately 137 days on average before selling it during these quarters.

Compared to the previous quarters, the DOH was lower in Q2 2023 at 128.47 days, but increased in Q1 2023 to 132.00 days. Throughout Q4 2022, Q3 2022, and Q2 2022 the trend showed a general increase in DOH, reaching the highest level in Q4 2022 at 132.67 days. However, a slight decline was observed in Q2 2022 at 119.18 days, indicating that the company was managing its inventory more efficiently during that quarter.

Overall, the analysis of LKQ Corp's DOH suggests that the company has experienced fluctuations in its inventory management practices over the past eight quarters, with some periods demonstrating better control over inventory levels compared to others. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's efficiency in managing its inventory to support its operations and financial performance.