Cohu Inc (COHU)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.24 | 3.50 | 4.13 | 3.87 | 4.21 | |
| DOH | days | 112.70 | 104.42 | 88.45 | 94.37 | 86.66 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.24
= 112.70
Based on the data provided, Cohu Inc's Days of Inventory on Hand (DOH) has exhibited fluctuations over the past five years. In 2023, the company held inventory for an average of 112.70 days, which is higher compared to the previous year's 104.42 days. This increase may indicate that Cohu Inc is experiencing slower inventory turnover or facing challenges in managing its inventory efficiently.
Looking back at previous years, the trend of increasing DOH is evident, with a significant jump from 88.45 days in 2021 to 94.37 days in 2020. This rising trend over the past five years suggests that Cohu Inc may be carrying excess inventory levels relative to its sales, potentially tying up capital and leading to higher carrying costs.
It is essential for Cohu Inc to closely monitor its inventory management practices to optimize its working capital and improve operational efficiency. Evaluating inventory turnover ratios, implementing just-in-time inventory systems, and conducting regular inventory audits can help the company reduce its DOH metric and enhance its overall financial performance.
Peer comparison
Dec 31, 2023