ADEIA CORP (ADEA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Inventory turnover		28.09	-5.19	43.24	—	—	117.16	87.90	95.61	123.83	54.73	56.42	62.97
DOH	days	13.00	—	8.44	—	—	3.12	4.15	3.82	2.95	6.67	6.47	5.80

December 31, 2023 calculation

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

Based on the data provided, it is clear that ADEIA CORP's days of inventory on hand (DOH) have varied over the past few quarters. In the most recent quarter at Dec 31, 2023, the company had inventory on hand for an average of 13.00 days.

The trend in DOH can provide insights into the company's inventory management practices. A higher number of days indicates that the company is holding onto inventory for a longer period, which could tie up capital and potentially lead to increased storage costs. On the other hand, a lower number of days may suggest that the company is efficiently managing its inventory, turning over stock quickly and reducing the risk of obsolescence.

In the previous quarters, the DOH figures varied with a range of 2.95 days to 8.44 days. This variability could be attributed to seasonality, changing customer demand, production efficiency, or other operational factors.

Analyzing the trend over time and comparing it to industry benchmarks can help determine if ADEIA CORP's inventory management is improving or needs further optimization. It is important for the company to strike a balance between having enough inventory to meet customer demand and avoiding excess stock that could tie up resources unnecessarily.