La-Z-Boy Incorporated (LZB)
Days of inventory on hand (DOH)
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.43 | 4.43 | 4.85 | 5.01 | 4.75 | |
| DOH | days | 82.45 | 82.45 | 75.21 | 72.82 | 76.81 |
April 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.43
= 82.45
La-Z-Boy Incorporated's days of inventory on hand (DOH) has shown relatively stable performance over the past five years, ranging from 72.82 days to 82.45 days. This metric indicates how many days, on average, it takes for the company to sell its inventory, with a lower number generally considered more favorable.
In April 2024, the DOH increased to 82.45 days, potentially signaling that La-Z-Boy is taking longer to turn over its inventory compared to previous periods. This could be a concern as higher DOH may tie up working capital and increase carrying costs.
It is important for La-Z-Boy to closely monitor its inventory management practices to ensure that inventory levels are optimized to meet customer demand while minimizing excess stock. Analyzing trends in DOH can help the company make informed decisions to improve operational efficiency and maintain a healthy balance between inventory turnover and carrying costs.
Peer comparison
Apr 30, 2024