Live Nation Entertainment Inc (LYV)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 345.56 | 383.07 | 318.59 | 128.78 | 63.75 | |
| DOH | days | 1.06 | 0.95 | 1.15 | 2.83 | 5.73 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 345.56
= 1.06
Live Nation Entertainment Inc's days of inventory on hand (DOH) has shown a consistent downward trend over the past five years, reflecting an improvement in the company's inventory management efficiency. The DOH decreased from 5.73 days as of December 31, 2020, to 2.83 days by December 31, 2021, and further declined to 1.15 days by December 31, 2022. Subsequently, it decreased to 0.95 days by December 31, 2023, before slightly increasing to 1.06 days by December 31, 2024.
This decreasing trend in the DOH indicates that Live Nation Entertainment Inc has been able to more efficiently manage its inventory levels, potentially optimizing its production and distribution processes. A lower DOH signifies that the company is selling its inventory more quickly, which can lead to lower storage costs, reduced risk of inventory obsolescence, and improved cash flow.
Overall, the decreasing trend in Live Nation Entertainment Inc's DOH demonstrates positive inventory management practices, potentially contributing to operational efficiency and financial performance. It suggests that the company is effectively balancing inventory levels to meet customer demand while minimizing excess inventory holding.
Peer comparison
Dec 31, 2024