Lamb Weston Holdings Inc (LW)
Days of inventory on hand (DOH)
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.96 | 3.94 | 4.37 | 4.31 | 4.34 | 4.12 | 4.21 | 4.50 | 4.56 | 6.11 | 5.76 | 5.01 | 4.56 | 4.47 | 4.47 | 4.53 | 4.53 | 5.89 | 5.70 | 6.05 | |
| DOH | days | 92.25 | 92.56 | 83.49 | 84.67 | 84.11 | 88.65 | 86.72 | 81.03 | 80.12 | 59.69 | 63.37 | 72.82 | 80.02 | 81.60 | 81.68 | 80.59 | 80.50 | 62.01 | 64.03 | 60.33 |
February 28, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.96
= 92.25
Days of Inventory on Hand (DOH) is an important financial ratio that indicates how efficiently a company manages its inventory. In the case of Lamb Weston Holdings Inc, the DOH has fluctuated over the reporting periods provided in the data.
From May 31, 2022, to February 28, 2025, the DOH for Lamb Weston Holdings Inc ranged from a low of 59.69 days to a high of 92.65 days. This indicates that the company holds its inventory for an average of around 60 to 90 days.
A higher DOH value suggests that Lamb Weston Holdings Inc takes a longer time to sell its inventory, which could indicate either slow sales or overstocking. On the other hand, a lower DOH value indicates a faster rate of inventory turnover, which could signify efficient inventory management.
It is important for the company to strike a balance between maintaining sufficient inventory to meet demand and avoiding excess inventory that could lead to storage costs and potential obsolescence. Monitoring the DOH and identifying trends over time can help management make informed decisions regarding inventory levels and operational efficiency.
Peer comparison
Feb 28, 2025