Cadence Design Systems Inc (CDNS)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		5.59	6.08	6.97	7.41	7.16	7.80	8.01	7.56	7.06	7.96	8.64	9.92	9.80	14.90	16.09	11.36	11.91	9.47	12.37	16.61
DOH	days	65.33	59.99	52.37	49.28	51.00	46.77	45.57	48.26	51.73	45.84	42.27	36.79	37.25	24.49	22.69	32.13	30.66	38.55	29.50	21.97

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.59
= 65.33

Cadence Design Systems, Inc.'s Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory. Over the past eight quarters, the trend in DOH has shown some fluctuations.

In the most recent quarter, Q4 2023, the DOH increased to 152.41 days compared to the previous quarter's figure of 140.77 days. This indicates that the company took longer to sell its inventory in Q4 2023. However, when compared to the same quarter last year (Q4 2022), there was an improvement in the efficiency of inventory turnover.

While the DOH has been somewhat volatile over the quarters, it is important to analyze the trend over a longer period to ascertain any underlying patterns or factors affecting inventory management within the company. Additionally, comparing DOH with industry benchmarks or competitors can provide further insights into Cadence Design Systems, Inc.'s inventory management efficiency.