Analog Devices Inc (ADI)

Days of inventory on hand (DOH)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover		4.31	4.18	4.02	4.20	4.49	5.02	6.74	6.62	6.44	3.86	5.12	5.17	5.27	5.26	5.26	5.46	5.52	5.40	3.18	3.36
DOH	days	84.72	87.38	90.88	86.87	81.29	72.70	54.12	55.11	56.64	94.52	71.25	70.62	69.27	69.34	69.34	66.84	66.18	67.63	114.92	108.66

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.31
= 84.72

To analyze Analog Devices Inc.'s days of inventory on hand (DOH) based on the data provided, we can observe an increasing trend in the DOH over the past eight quarters. In Q2 2022, the DOH was at its lowest point at 95.60 days, indicating that the company held inventory for approximately 3 months. However, since then, there has been a steady increase in the DOH, reaching a peak of 139.78 days in Q3 2023.

The rising trend in the DOH suggests that Analog Devices Inc. might be facing challenges in managing its inventory effectively. A higher number of days of inventory on hand could indicate potential issues such as overstocking, slow-moving inventory, or inefficiencies in inventory management processes.

It is crucial for the company to monitor and control its inventory levels effectively to optimize working capital and reduce carrying costs. Analyzing the reasons behind the increasing DOH and implementing strategies to improve inventory turnover could help Analog Devices Inc. enhance its operational efficiency and financial performance in the long run.