Cognex Corporation (CGNX)

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		4.30	4.19	3.94	3.51	3.57	7.65	8.08	8.11	8.58	5.57	6.61	4.55	5.20	5.38	5.81	6.51	6.32	9.35	9.28	8.43
DOH	days	84.87	87.15	92.71	104.03	102.38	47.73	45.19	44.99	42.55	65.57	55.25	80.26	70.15	67.89	62.86	56.04	57.79	39.03	39.31	43.30

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.30
= 84.87

Days of Inventory on Hand (DOH) is a financial ratio that indicates how many days, on average, a company holds its inventory before selling it. A lower DOH value suggests efficient inventory management, while a higher value implies slower turnover and potential risks such as inventory obsolescence or storage costs.

Based on the data provided for Cognex Corporation, the trend in DOH over the past few quarters fluctuates significantly. From March 31, 2020, to June 30, 2022, the DOH ranged between 39.03 days and 80.26 days, showing some variability in inventory management efficiency during this period.

However, the DOH increased notably in the subsequent quarters, reaching a peak of 104.03 days on March 31, 2024, before slightly decreasing to 84.87 days by the end of December 2024. This substantial increase in DOH could indicate potential challenges in managing inventory levels, such as overstocking or slowing sales.

Overall, Cognex Corporation should closely monitor its inventory turnover and seek to optimize its inventory management practices to enhance operational efficiency and reduce the risks associated with prolonged inventory holding periods.