Louisiana-Pacific Corporation (LPX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.26 | 6.99 | 7.02 | 6.05 | 7.57 | |
| DOH | days | 69.40 | 52.21 | 51.98 | 60.37 | 48.19 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.26
= 69.40
Louisiana-Pacific Corp.'s days of inventory on hand (DOH) has shown some fluctuations over the past five years. In 2023, the company had an average of 69.40 days of inventory on hand, which was a significant increase compared to the previous year where it was 52.08 days. This suggests that the company may have been holding onto inventory for a longer period in 2023.
Looking further back, in 2021, the DOH was 47.65 days, slightly lower than in 2020 when it was 49.24 days. The DOH was also relatively consistent in 2019 at 48.19 days.
The increase in DOH in 2023 could indicate potential issues such as overstocking or slowing sales. It is essential for the company to closely monitor and manage its inventory levels to ensure efficient use of resources and liquidity. Further analysis of the company's operations and market conditions may provide more insights into the reasons behind the fluctuations in the DOH.
Peer comparison
Dec 31, 2023