Cognex Corporation (CGNX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.34	3.57	4.91	5.22	8.50
DOH	days	84.11	102.12	74.36	69.94	42.92

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.34
= 84.11

The days of inventory on hand (DOH) for Cognex Corporation has shown an increasing trend over the years based on the provided data. In December 31, 2020, the DOH stood at 42.92 days, but it has steadily risen to 69.94 days by December 31, 2021, further increasing to 74.36 days by December 31, 2022. The trend continued with a significant spike to 102.12 days by December 31, 2023, indicating that the company is holding inventory for a longer period before selling it. However, there was a slight improvement as of December 31, 2024, with the DOH decreasing to 84.11 days. This suggests that the company may have made efforts to manage its inventory levels more effectively but still maintains a relatively high level of inventory on hand compared to previous years, potentially impacting liquidity and tying up resources.