Benchmark Electronics Inc (BHE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		4.31	4.15	4.13	3.99	3.76	3.62	3.54	3.45	3.62	3.38	3.50	3.56	3.92	4.07	4.60	5.27	5.74	5.32	5.24	5.91
DOH	days	84.69	87.86	88.39	91.44	97.19	100.82	103.01	105.85	100.96	108.03	104.14	102.59	93.19	89.58	79.35	69.32	63.62	68.56	69.67	61.72

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.31
= 84.69

The Days of Inventory on Hand (DOH) for Benchmark Electronics Inc have displayed fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH metric provides insight into how quickly the company is able to convert its inventory into sales.

From March 2020 to March 2021, the DOH remained relatively stable at around 60 to 70 days, indicating that Benchmark Electronics had an inventory level that could cover about 2 to 3 months of sales. However, from June 2021 to December 2024, there was a noticeable increase in the DOH, peaking at 108.03 days on September 30, 2022. This suggests a prolonged period during which inventory was held before being sold.

The rising trend in DOH may indicate potential issues such as excessive inventory levels, slowing demand, obsolescence of products, or inefficiencies in inventory management. It could also result in increased carrying costs, risk of inventory write-downs, and reduced cash flow due to tied-up capital.

Further investigation into the reasons behind the prolonged inventory holding periods would be necessary to identify and address any underlying issues that may be impacting Benchmark Electronics' operational efficiency and financial performance.