Lindsay Corporation (LNN)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.69 | 2.96 | 2.95 | 2.87 | 3.07 | |
| DOH | days | 135.51 | 123.44 | 123.74 | 127.00 | 118.73 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.69
= 135.51
The days of inventory on hand (DOH) for Lindsay Corporation has shown a fluctuating trend over the past five years. In the latest fiscal year ending on August 31, 2024, the company reported a DOH of 135.51 days, which represents an increase compared to the previous year's DOH of 123.44 days. This indicates that the company held inventory for a longer period in the most recent year.
Looking back at the historical data, we observe that the DOH was relatively stable around the 120-130 day range in the years 2021 and 2022, with minimal fluctuations. However, in the fiscal year ending on August 31, 2020, the DOH was notably lower at 118.73 days.
The increase in DOH in the latest fiscal year may suggest a buildup of inventory or a slower turnover of inventory for Lindsay Corporation. It is essential for the company to monitor and manage its inventory levels effectively to ensure optimal inventory turnover and avoid excess carrying costs associated with holding inventory for an extended period. Further analysis and comparisons with industry benchmarks may provide additional insights into the efficiency of Lindsay Corporation's inventory management strategies.
Peer comparison
Aug 31, 2024