Lumen Technologies Inc (LUMN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		56.12	51.88	49.64	43.93	37.78	31.86	36.01	34.53	33.34	45.41	54.83	65.13	88.42	83.82	76.47	88.35	85.09	82.36	78.51	82.29
DOH	days	6.50	7.03	7.35	8.31	9.66	11.46	10.14	10.57	10.95	8.04	6.66	5.60	4.13	4.35	4.77	4.13	4.29	4.43	4.65	4.44

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 56.12
= 6.50

Lumen Technologies Inc's days of inventory on hand (DOH) fluctuated over the analyzed periods. The company maintained a relatively stable DOH in the range of 4 to 5 days from March 2020 to June 2021. However, there was a notable increase in DOH starting from March 2022, peaking at 11.46 days in September 2023, before gradually declining to 6.50 days by December 2024.

The increase in DOH from March 2022 indicates that Lumen Technologies Inc may have experienced challenges in managing its inventory efficiently during this period, potentially leading to excess inventory levels or slower inventory turnover. A high DOH can tie up working capital and indicate inefficiencies in inventory management.

The subsequent decrease in DOH from September 2023 to December 2024 suggests that the company may have implemented strategies to streamline its inventory management processes, leading to a more optimal level of inventory on hand.

Overall, monitoring and managing days of inventory on hand is crucial for Lumen Technologies Inc to ensure efficient operations, minimize carrying costs, and optimize working capital utilization.