Cirrus Logic Inc (CRUS)

Days of inventory on hand (DOH)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Sep 23, 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
Inventory turnover		3.01	3.19	3.40	3.86	4.33	3.76	2.58	2.76	3.01	4.03	6.46	5.77	5.23	6.20	5.20	3.97	3.55	3.82	4.55	2.83
DOH	days	121.29	114.35	107.46	94.50	84.27	97.11	141.30	132.07	121.08	90.59	56.46	63.21	69.82	58.90	70.22	91.98	102.82	95.54	80.18	128.80

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.01
= 121.29

The days of inventory on hand (DOH) for Cirrus Logic Inc have displayed fluctuations over the past few years. It was observed that the DOH decreased from 128.80 days as of September 30, 2020, to 56.46 days by December 31, 2022. This significant decrease indicates improved inventory management efficiency during this period.

However, from March 31, 2023, the DOH started to increase, reaching a peak of 141.30 days as of September 30, 2023. This sudden spike in inventory holding period may suggest either an increase in unsold inventory or challenges in managing the inventory effectively.

Subsequently, the company managed to reduce the DOH to around 94.50 days as of June 30, 2024, but the ratio increased again to 114.35 days by December 31, 2024. This fluctuation in DOH may raise concerns regarding inventory management practices and the balance between maintaining adequate stock levels and avoiding excess inventory.

Overall, a decreasing trend in DOH is generally preferred as it indicates efficient inventory turnover and management. However, consistent fluctuations in the DOH, as seen in the case of Cirrus Logic Inc, may require further investigation into the company's supply chain, production planning, and sales forecasting processes to optimize inventory levels and improve operational efficiency.