ADEIA CORP (ADEA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		28.09	—	123.84	49.35
DOH	days	13.00	—	2.95	7.40

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 28.09
= 13.00

The Days of Inventory on Hand (DOH) for ADEIA CORP have shown variability over the past four years. In 2020, the DOH was 7.40 days, indicating that, on average, the company held inventory for approximately 7.40 days before selling it. This figure decreased significantly to 2.95 days in 2021, suggesting that the company managed its inventory more efficiently, reduced excess stock levels, or improved its sales turnover.

However, in 2023, the DOH increased to 13.00 days, signifying that ADEIA CORP might be experiencing challenges in managing its inventory effectively. A higher DOH value can indicate excess inventory levels, slow-moving inventory, or declining sales, all of which can tie up cash flow and negatively impact profitability.

It is essential for ADEIA CORP to analyze the reasons behind the significant increase in DOH in 2023 and take appropriate measures to optimize inventory levels. Regular monitoring and management of inventory levels are crucial to ensuring efficient operations and maximizing financial performance.