Cohu Inc (COHU)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 1.56 2.14 2.52 3.11 2.56
DOH days 233.78 170.50 144.61 117.51 142.80

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.56
= 233.78

The days of inventory on hand (DOH) for Cohu Inc have shown some fluctuations over the past five years.

On December 31, 2020, Cohu Inc had an average of 142.80 days worth of inventory on hand, indicating that it took approximately this many days to sell its inventory. By December 31, 2021, the DOH decreased to 117.51 days, suggesting that the company was managing its inventory more efficiently and selling its products at a faster rate.

However, by December 31, 2022, the DOH increased to 144.61 days, which may indicate increased inventory levels or a slowdown in sales. The trend continued in the following years, with the DOH reaching 170.50 days on December 31, 2023, and a significant increase to 233.78 days by December 31, 2024.

Such a significant increase in DOH in 2024 could be a cause for concern as it may suggest inefficiencies in managing inventory or challenges in selling products. Cohu Inc should closely monitor its inventory levels and sales performance to optimize its operations and improve its overall financial health.