Lockheed Martin Corporation (LMT)

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 18.87 17.88 16.82 16.63 18.68 18.09 16.20 18.12 19.45 19.81 18.64 17.58 16.01 16.91 15.46 14.94 14.22 14.44 13.74 14.81
DOH days 19.35 20.42 21.70 21.95 19.54 20.18 22.53 20.14 18.77 18.43 19.59 20.76 22.80 21.59 23.61 24.44 25.68 25.28 26.57 24.64

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.87
= 19.35

Lockheed Martin Corp.'s days of inventory on hand (DOH) measures the average number of days that the company holds inventory before it is sold. A lower DOH indicates that the company is selling inventory more quickly, while a higher DOH may indicate inefficiency in inventory management.

Analyzing the trend in Lockheed Martin Corp.'s DOH, it can be observed that the DOH has fluctuated over the past eight quarters. In the most recent quarter, ending Dec 31, 2023, the DOH was 19.38 days, which was lower than the DOH of 20.45 days in the previous quarter.

This indicates that Lockheed Martin Corp. improved its inventory turnover efficiency in the most recent quarter. However, it is important to note that the DOH has shown some volatility over the past two years, with peaks observed in Jun 2022 and Mar 2023.

Overall, the trend in DOH suggests that Lockheed Martin Corp. has experienced some variability in its ability to manage inventory efficiently. It would be important to assess the impact of these inventory management fluctuations on the company's working capital and overall profitability.

See also:

Lockheed Martin Corporation Average Inventory Processing Period (Quarterly Data)