Applied Materials Inc (AMAT)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Oct 27, 2024	Jul 31, 2024	Jul 28, 2024	Apr 30, 2024	Apr 28, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022
Inventory turnover		2.76	2.87	2.83	2.70	2.69	2.64	2.65	2.70	2.69	2.61	2.61	2.49	2.60	2.51	2.56	2.55	2.53	2.47	2.51	2.80
DOH	days	132.09	127.30	129.08	135.15	135.78	138.18	137.62	135.34	135.82	139.65	139.82	146.77	140.28	145.55	142.45	143.19	144.46	147.71	145.44	130.15

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.76
= 132.09

The days of inventory on hand (DOH) for Applied Materials Inc have shown some fluctuations over the period under review. The DOH ranged from a high of 147.71 days on October 30, 2022, to a low of 127.30 days on October 31, 2024, indicating variations in the efficiency of managing inventory levels.

Overall, the trend in DOH appears to have slightly decreased towards the end of the period, with a DOH of 132.09 days on January 31, 2025. This suggests that Applied Materials Inc may have improved its inventory management practices by reducing the number of days it holds inventory before selling it.

It is important to note that a lower DOH generally indicates better inventory management efficiency as it implies that the company is able to sell its inventory more quickly, thereby reducing carrying costs and risk of obsolescence. However, a very low DOH could also suggest stockouts or potential challenges in meeting customer demand.

Further analysis of the reasons behind the fluctuations in DOH, along with comparisons to industry peers and historical data, would provide deeper insights into the effectiveness of Applied Materials Inc's inventory management strategy.