Allegro Microsystems Inc (ALGM)

Days of inventory on hand (DOH)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 23, 2022	Sep 23, 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
Inventory turnover		4.16	3.95	3.46	3.24	3.76	4.66	5.67	6.29	5.99	6.45	6.96	5.93
DOH	days	87.74	92.37	105.51	112.65	97.12	78.39	64.41	58.00	60.90	56.56	52.46	61.56

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.16
= 87.74

The Days of Inventory on Hand (DOH) for Allegro Microsystems Inc has shown fluctuations over the past few quarters. Generally, the company has been able to maintain its inventory for a consistent number of days.

In the most recent quarter, as of March 31, 2024, the company had an average of 87.74 days of inventory on hand. This indicates that the company is holding inventory for nearly 3 months before it is sold.

Comparing this to previous quarters, the DOH has decreased from 92.37 days at the end of December 2023 and 105.51 days at the end of September 2023. This reduction may signify better inventory management, as the company is carrying less stock relative to its sales.

However, it is important to note that inventory levels can be influenced by various factors such as demand fluctuations, production cycles, and supply chain disruptions. Monitoring the DOH over time can provide insights into the company's operational efficiency and inventory management practices.