Lamb Weston Holdings Inc (LW)
Days of inventory on hand (DOH)
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.75 | 4.57 | 4.57 | 5.56 | 4.80 | 4.76 | 4.64 | 5.83 | 6.37 | 5.60 | 5.75 | 7.23 | 6.24 | 5.44 | 4.90 | 6.71 | 6.66 | 5.49 | 5.09 | 6.75 | |
| DOH | days | 76.91 | 79.91 | 79.84 | 65.68 | 75.99 | 76.71 | 78.58 | 62.59 | 57.26 | 65.17 | 63.52 | 50.49 | 58.52 | 67.11 | 74.52 | 54.40 | 54.81 | 66.47 | 71.71 | 54.10 |
May 26, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.75
= 76.91
The days of inventory on hand (DOH) of Lamb Weston Holdings Inc has fluctuated over the period under consideration. In general, the company has maintained its inventory for around 60 to 80 days based on the data provided. There was a noticeable increase in DOH in the earlier part of the period, reaching a peak of around 79.91 days in February 2024. This increase might indicate a buildup of inventory levels, which could tie up working capital and increase holding costs.
However, in the latter part of the period, there was a decrease in DOH, with the lowest level recorded at 50.49 days in August 2021. This decrease in DOH suggests that the company managed its inventory more efficiently during this period, potentially improving cash flow and reducing inventory holding costs.
Overall, it is important for Lamb Weston Holdings Inc to strike a balance between efficiently managing inventory levels to meet demand while avoiding excessive stockpiling that can tie up resources. Further analysis of the company's inventory turnover and production planning processes could provide additional insights into the effectiveness of its inventory management practices.
Peer comparison
May 26, 2024