Broadcom Inc (AVGO)

Days of inventory on hand (DOH)

		Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020
Inventory turnover		10.83	5.86	5.77	8.18	10.34
DOH	days	33.70	62.25	63.25	44.64	35.30

November 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.83
= 33.70

Broadcom Inc's days of inventory on hand (DOH) have shown fluctuations over the past five years. The company's inventory turnover efficiency improved significantly from 62.25 days in October 2023 to 33.70 days in November 2024, indicating a more rapid conversion of inventory into sales. However, it is worth noting that in the two previous years, the DOH was relatively stable at around 63 days, indicating a longer period for inventory turnover.

The decrease in DOH from 2023 to 2024 could suggest improvements in inventory management, such as better demand forecasting, inventory controls, or supply chain efficiencies. Lower DOH values are generally favorable as they indicate that the company is selling its inventory quickly, reducing the risk of obsolescence and the need for significant inventory write-downs.

Overall, the trend towards a lower DOH in the most recent year is a positive signal for Broadcom Inc's operational efficiency in managing its inventory levels. Investors and stakeholders may view this as a reflection of effective inventory management practices leading to potential cost savings and improved liquidity.