Louisiana-Pacific Corporation (LPX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.91 | 5.26 | 6.99 | 7.02 | 6.05 | |
| DOH | days | 61.79 | 69.40 | 52.21 | 51.98 | 60.37 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.91
= 61.79
The days of inventory on hand (DOH) ratio for Louisiana-Pacific Corporation has shown fluctuations over the years. In 2020, the company had 60.37 days of inventory on hand, which decreased to 51.98 days by the end of 2021. In 2022 and 2024, the DOH ratio remained relatively stable at around 52.21 days and 61.79 days, respectively.
However, there was a notable increase in the DOH ratio by the end of 2023, reaching 69.40 days. This could indicate a slower inventory turnover or potentially an increase in inventory levels relative to sales during that period.
Overall, the company should continue to monitor its inventory management practices to optimize its inventory levels and ensure efficient utilization of resources. Efforts to balance inventory levels with demand fluctuations can lead to improved working capital management and overall operational efficiency.
Peer comparison
Dec 31, 2024