Advanced Energy Industries Inc (AEIS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.68 | 2.60 | 2.62 | 2.85 | 3.21 | 3.06 | 3.00 | 2.96 | 3.11 | 2.72 | 2.56 | 2.67 | 2.73 | 2.61 | 3.04 | 3.57 | 3.95 | 3.40 | 2.85 | 2.56 | |
| DOH | days | 136.32 | 140.36 | 139.18 | 128.13 | 113.71 | 119.27 | 121.74 | 123.50 | 117.31 | 134.13 | 142.33 | 136.80 | 133.73 | 139.76 | 120.14 | 102.12 | 92.44 | 107.42 | 128.20 | 142.78 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.68
= 136.32
Advanced Energy Industries Inc's days of inventory on hand (DOH) has shown fluctuations over the analyzed period, ranging from a high of 142.78 days on March 31, 2020, to a low of 113.71 days on December 31, 2023. Generally, a lower DOH indicates that the company is selling its inventory more quickly, which can improve cash flow and reduce storage costs.
The company experienced a decreasing trend in DOH from March 2020 to December 2023, suggesting better inventory management and efficiency in sales. However, there was a slight uptick in DOH towards the end of the analyzed period, as seen in the increase from 113.71 days on December 31, 2023, to 136.32 days on December 31, 2024.
It is essential for Advanced Energy Industries Inc to monitor and manage its inventory levels effectively to maintain a balance between meeting customer demand and avoiding excess inventory holding costs. A consistently high DOH may indicate potential issues such as slow-moving inventory or overstocking, while a very low DOH may imply stockouts and lost sales opportunities. Tracking DOH over time and comparing it with industry benchmarks can help the company optimize its inventory management practices for improved operational efficiency.
Peer comparison
Dec 31, 2024