Applied Materials Inc (AMAT)

Days of inventory on hand (DOH)

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Inventory turnover		2.83	2.80	2.77	2.72	2.62	2.61	2.71	2.91	3.12	3.06	3.05	2.82	2.65	2.53	2.30	2.32	2.43	2.37	2.32	2.31
DOH	days	128.86	130.32	131.75	134.43	139.45	139.95	134.78	125.54	116.88	119.11	119.70	129.31	137.71	144.02	159.00	157.42	150.19	154.22	157.45	157.95

January 28, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.83
= 128.86

To analyze Applied Materials Inc.'s days of inventory on hand (DOH) over the past eight quarters, we observe a fluctuating trend. The DOH has ranged from a high of 157.01 days in Q1 2023 to a low of 140.24 days in Q2 2022.

In recent quarters, the company has shown a slight increase in DOH, with the latest data indicating 146.76 days in Q1 2024. This may suggest that the company is taking longer to turn its inventory into sales, which could potentially tie up working capital and increase carrying costs.

Overall, Applied Materials Inc. should closely monitor its inventory management practices to ensure efficiency and cost-effectiveness in handling its inventory levels in order to optimize operational performance and profitability.