Allegro Microsystems Inc (ALGM)

Days of inventory on hand (DOH)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Inventory turnover		4.15	3.62	5.99	5.44
DOH	days	87.88	100.72	60.90	67.06

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.15
= 87.88

The days of inventory on hand (DOH) for Allegro Microsystems Inc have shown variability over the past four years. In the most recent fiscal year ending on March 31, 2024, the company held inventory for an average of 87.88 days, which represents a decrease from the previous year's DOH of 100.72 days. This reduction in DOH may indicate an improvement in inventory management efficiency, as the company is holding inventory for a shorter period, potentially reducing storage costs and the risk of obsolescence.

Comparing the current DOH to two years prior, where the DOH was 60.90 days, there has been an increase in the time it takes for Allegro Microsystems Inc to sell its inventory. However, it is worth noting that the DOH for the most recent year is still lower than in the fiscal year ending March 31, 2021, where the company held inventory for an average of 67.06 days.

Overall, while there has been some fluctuation in the days of inventory on hand for Allegro Microsystems Inc in recent years, the company seems to have made progress in managing its inventory more efficiently in the most recent fiscal year. An optimal balance between holding enough inventory to meet demand and minimizing excess inventory levels is essential for the company to control costs and operate effectively.