Cadence Design Systems Inc (CDNS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.82	2.39	2.90	2.65	4.02
DOH	days	446.01	152.41	125.72	137.58	90.75

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.82
= 446.01

Cadence Design Systems Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend in recent years. In December 2020, the company had 90.75 days of inventory on hand, indicating that it took approximately 90.75 days to sell its inventory. This number increased significantly to 137.58 days by December 2021, suggesting a potential buildup of inventory or slower inventory turnover.

Subsequently, by December 2022, the DOH decreased to 125.72 days, indicating a slight improvement in inventory management efficiency. However, by December 2023, the DOH surged to 152.41 days, signifying a possible challenge in effectively managing and selling inventory.

The most notable change occurred by December 2024, where the DOH spiked to 446.01 days. This sharp increase could raise concerns about overstocking, obsolete inventory, or potential inefficiencies in inventory management processes.

Overall, Cadence Design Systems Inc's DOH trend demonstrates fluctuations that may warrant further investigation into the company's inventory management practices to optimize working capital and operational efficiency.