LKQ Corporation (LKQ)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.77 | 2.87 | 2.93 | 2.77 | 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 | |
| DOH | days | 131.97 | 127.36 | 124.78 | 131.84 | 137.40 | 137.35 | 128.47 | 132.00 | 132.67 | 124.75 | 123.46 | 119.18 | 122.69 | 115.89 | 116.06 | 122.56 | 125.27 | 116.02 | 116.59 | 131.44 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.77
= 131.97
The days of inventory on hand (DOH) for LKQ Corporation have shown fluctuations over the past few years, ranging from a low of 115.89 days on September 30, 2021, to a high of 137.40 days on December 31, 2023. Generally, a lower number of days of inventory on hand indicates better inventory management efficiency, as it implies that the company is selling goods more quickly.
The company's DOH peaked in the second half of 2023 but dropped back to around 124.78 days by June 30, 2024. This reduction in DOH could suggest improved inventory turnover and more effective management of inventory levels. However, the ratio increased slightly to 131.97 days by the end of December 2024, possibly indicating a buildup of inventory relative to sales.
It is important for LKQ Corporation to closely monitor its DOH to ensure that inventory levels are optimized to meet customer demand without tying up excess capital in inventory. Analyzing the trends in DOH can provide insights into the company's inventory management practices, efficiency, and potential impact on its financial performance.