Broadcom Inc (AVGO)

Days of inventory on hand (DOH)

		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	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Inventory turnover		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	11.57	9.16	9.63
DOH	days	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	31.54	39.83	37.88

February 4, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.67
= 54.73

Broadcom Inc's days of inventory on hand (DOH) has displayed some fluctuations over the past few reported periods. The trend shows a general increase in DOH from a low of 31.54 days in August 2019 to a peak of 63.25 days in October 2022. This indicates that Broadcom Inc has been carrying inventory for a longer period compared to earlier periods.

The average DOH over the periods is approximately 47.94 days, suggesting that the company typically holds inventory for around 48 days before it is sold. Analyzing the recent data points, there seems to be a slight downward trend in the DOH metric, with the most recent figure at 54.73 days in February 2024, lower than the previous high of 62.25 days in October 2023.

A high DOH could imply overstocking or potential obsolescence risks, while a low DOH may indicate efficient inventory management or possibly inadequate stock levels affecting sales. It would be crucial for management to continue monitoring inventory levels closely to ensure they are optimized for operational efficiency and profitability.