Cohu Inc (COHU)
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 | 2.91 | 3.01 | 3.00 | 3.07 | 3.50 | 3.51 | 3.72 | 3.98 | 4.13 | 4.13 | 3.97 | 3.43 | 3.62 | 3.58 | 3.37 | 3.68 | 3.85 | 4.14 | 3.61 | 3.28 | |
| DOH | days | 125.30 | 121.45 | 121.58 | 118.90 | 104.42 | 104.09 | 98.06 | 91.75 | 88.44 | 88.43 | 92.05 | 106.27 | 100.77 | 102.08 | 108.15 | 99.05 | 94.91 | 88.07 | 101.13 | 111.32 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.91
= 125.30
The Days of Inventory on Hand (DOH) for Cohu Inc has shown fluctuations over the past few quarters. The trend indicates an upward trajectory in inventory holding periods, which may imply slower inventory turnover and potential liquidity challenges. Specifically, from September 2020 to December 2023, the DOH increased from 88.07 days to 125.30 days.
Moreover, the DOH exceeded 100 days in several quarters, suggesting that Cohu Inc may be carrying excess inventory levels, which could tie up capital and increase carrying costs. This prolonged holding period can also indicate potential inefficiencies in inventory management, leading to obsolete or slow-moving inventory.
It is essential for Cohu Inc to closely monitor and optimize its inventory levels to improve operational efficiency, reduce costs, and enhance cash flow. Analyzing the reasons behind the increase in DOH and implementing strategies to streamline inventory management processes could help mitigate the adverse effects of prolonged inventory holding periods on the company's financial performance.
Peer comparison
Dec 31, 2023