Avnet Inc (AVT)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.84 | 3.79 | 3.68 | 3.99 | 4.27 | 4.34 | 4.66 | 4.81 | 5.03 | 5.52 | 5.37 | 5.49 | 5.34 | 5.94 | 5.62 | 5.33 | 5.70 | 5.82 | 5.59 | 5.51 | |
| DOH | days | 95.09 | 96.27 | 99.10 | 91.49 | 85.41 | 84.19 | 78.29 | 75.84 | 72.57 | 66.07 | 68.03 | 66.54 | 68.32 | 61.44 | 64.90 | 68.50 | 64.04 | 62.74 | 65.31 | 66.27 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.84
= 95.09
The Days of Inventory on Hand (DOH) for Avnet Inc have shown some fluctuations over the past few quarters. Generally, a lower DOH indicates that the company is able to sell its inventory more quickly, while a higher DOH may suggest inefficiencies in inventory management.
Looking at the trend, we observe that the DOH has fluctuated between 61.44 days to 99.10 days over the last two years. There was a slight upward trend in DOH from December 2021 to March 2024, reaching a peak of 99.10 days in December 2023. This increase may indicate that Avnet Inc was holding onto its inventory for a longer period, which could tie up working capital and potentially lead to higher holding costs.
However, in the most recent quarter, there was a slight decrease in DOH to 95.09 days, indicating a potential improvement in inventory management efficiency. It will be important to monitor future trends to see if Avnet Inc can sustain this improvement or if the DOH fluctuates further.
Overall, while fluctuations in DOH are common in businesses, Avnet Inc should strive to maintain a balance between having enough inventory to meet customer demand while also minimizing holding costs and inefficiencies. Regular monitoring and analysis of the DOH can help the company optimize its inventory levels and improve overall financial performance.
Peer comparison
Jun 30, 2024