Broadcom Inc (AVGO)

Days of inventory on hand (DOH)

		Nov 3, 2024	Aug 4, 2024	May 5, 2024	Feb 4, 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	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Inventory turnover		10.83	8.92	8.09	6.67	5.86	6.10	6.00	5.98	5.77	5.92	6.40	6.95	8.18	9.10	10.44	11.01	10.34	9.51	10.76	10.73
DOH	days	33.70	40.90	45.13	54.73	62.25	59.79	60.83	61.00	63.25	61.70	57.05	52.54	44.64	40.11	34.96	33.15	35.30	38.40	33.93	34.02

November 3, 2024 calculation

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

Days of Inventory on Hand (DOH) is a financial ratio that indicates the average number of days a company holds its inventory before selling it. A lower DOH value is generally preferred as it suggests efficient inventory management.

Analyzing the historical trend of Broadcom Inc's DOH shows some fluctuations. The DOH was relatively stable around 60 days from Oct 2022 to Jan 2023, indicating consistent inventory management practices during that period. Subsequently, there was a gradual decline in DOH to 33.15 days by Jan 31, 2021, indicating a more efficient management of inventory levels.

However, there was a slight increase in DOH in the following quarters until Feb 4, 2024, where it peaked at 54.73 days. This increase suggests a potential buildup of inventory, which could lead to higher carrying costs and potential risks of obsolescence.

From Feb 4, 2024, to Nov 3, 2024, the DOH decreased to 33.70 days, indicating a positive trend of reducing inventory levels. This decline could be a result of improved forecasting or sales strategies by Broadcom Inc.

Overall, it is important for Broadcom Inc to actively manage its inventory to maintain an optimal balance between inventory levels and sales demand to ensure efficient operations and profitability.