Advanced Micro Devices Inc (AMD)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.81	3.70	3.49	3.75	4.55	4.48	5.26	5.01	5.20	4.91	4.86	4.55	4.58	4.41	3.82	4.60	4.70	4.09	4.12	4.53
DOH	days	95.71	98.66	104.68	97.33	80.20	81.51	69.42	72.92	70.19	74.35	75.10	80.27	79.65	82.82	95.52	79.32	77.70	89.34	88.63	80.56

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.81
= 95.71

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days it takes a company to sell its inventory. A higher DOH value indicates that a company is taking longer to sell its inventory, which may indicate overstocking or potential issues with demand for its products.

Analyzing the historical trend of Advanced Micro Devices Inc's DOH, we observe fluctuations in the ratio over the past few quarters. In the most recent quarter, on December 31, 2023, the DOH was 95.71 days, indicating that the company took approximately 95.71 days to sell its inventory. This was slightly lower compared to the previous quarter's DOH of 98.66 days.

Looking further back, we see variations in DOH values with some quarters showing higher values, such as in June 2023 (104.68 days), and others showing lower values, such as in June 2022 (69.42 days). This indicates fluctuations in inventory management efficiency.

Overall, the trend in DOH suggests that Advanced Micro Devices Inc has experienced some inconsistency in managing its inventory levels efficiently and effectively selling its products in a timely manner. It would be crucial for the company to closely monitor and optimize its inventory management practices to ensure a balance between maintaining adequate stock levels and avoiding excess inventory buildup that could impact profitability.