Cisco Systems Inc (CSCO)

Days of inventory on hand (DOH)

		Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020
Inventory turnover		10.02	9.44	12.00	19.51	22.91
DOH	days	36.44	38.66	30.41	18.71	15.93

July 27, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.02
= 36.44

The days of inventory on hand (DOH) for Cisco Systems Inc have exhibited variability over the past five years. In July 2024, the company held inventory for an average of 36.44 days, which was a decrease from 38.66 days in July 2023. This decrease indicates that Cisco was able to turn over its inventory more efficiently in 2024 compared to the previous year.

Looking further back, the DOH was 30.41 days in July 2022, showing an improvement in inventory management compared to 2021 when it was 18.71 days. This indicates that Cisco held inventory for a longer period in 2022 compared to 2021.

The most significant increase in efficiency was observed between July 2020 and July 2021, where the DOH decreased from 15.93 days to 18.71 days. This improvement signifies that in 2021, Cisco was able to reduce the number of days it held inventory on hand, potentially leading to cost savings and improved cash flow.

Overall, fluctuations in the DOH for Cisco Systems Inc over the past five years suggest varying levels of inventory management effectiveness, with efforts made to optimize the balance between maintaining sufficient inventory levels and minimizing excess stock.