Lamb Weston Holdings Inc (LW)
Days of inventory on hand (DOH)
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.75 | 4.80 | 6.37 | 6.24 | 6.66 | |
| DOH | days | 76.91 | 75.99 | 57.26 | 58.52 | 54.81 |
May 26, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.75
= 76.91
Lamb Weston Holdings Inc's Days of Inventory on Hand (DOH) has shown some fluctuation over the past five years. The company's inventory turnover efficiency has ranged from a high of 76.91 days in 2024 to a low of 54.81 days in 2020.
In general, a higher number of days of inventory on hand indicates that the company may be holding onto its inventory for a longer period before selling it. This could tie up the company's working capital and increase storage costs. On the other hand, a lower number of days of inventory on hand suggests that the company is efficiently managing its inventory, which could lead to lower storage costs and less risk of inventory obsolescence.
It is essential for Lamb Weston Holdings Inc to closely monitor and manage its inventory levels to optimize its working capital efficiency and overall profitability. Further analysis and comparison to industry benchmarks and historical trends can provide deeper insights into the company's inventory management practices and operational efficiency.
Peer comparison
May 26, 2024