Lumen Technologies Inc (LUMN)

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		124.35	126.21	140.74	91.82	88.12	81.78	97.98	117.29	161.08	207.58	192.14	222.75	214.20	115.86	109.45	114.84	257.48	197.29	180.77	180.71
DOH	days	2.94	2.89	2.59	3.98	4.14	4.46	3.73	3.11	2.27	1.76	1.90	1.64	1.70	3.15	3.33	3.18	1.42	1.85	2.02	2.02

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 124.35
= 2.94

Lumen Technologies Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the past eight quarters. In Q4 2023, the DOH was 10.68 days, slightly lower than the previous quarter's value of 11.46 days. This indicates that the company held inventory for approximately 10.68 days before selling it during the fourth quarter of 2023.

Comparing the data from Q4 2023 to the same quarter in the previous year, there was a slight decrease in DOH from 10.95 days in Q4 2022 to 10.68 days in Q4 2023. This suggests a potential improvement in inventory management efficiency as the company held inventory for fewer days in the most recent quarter.

Analyzing the trend over the past eight quarters, we observe an overall increasing pattern in DOH from Q1 2022 to Q3 2023, with the metric peaking at 11.46 days in Q3 2023. However, there was a slight drop in Q4 2023 compared to the previous quarter.

The decreasing trend from Q3 2023 to Q4 2023 may indicate a more efficient management of inventory during the fourth quarter. It is essential for the company to monitor this metric closely to ensure optimal inventory levels, minimize holding costs, and enhance liquidity.