Cisco Systems Inc (CSCO)

Days of inventory on hand (DOH)

		Jul 27, 2024	Apr 27, 2024	Jan 27, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 23, 2021	Oct 24, 2020	Jul 25, 2020	Apr 25, 2020	Jan 25, 2020	Oct 26, 2019
Inventory turnover		9.85	10.70	10.53	10.25	9.35	9.52	10.20	11.78	12.00	13.75	14.91	16.44	19.33	18.78	20.16	22.26	22.78	24.61	22.69	23.19
DOH	days	37.06	34.10	34.66	35.61	39.03	38.36	35.77	30.97	30.42	26.55	24.48	22.20	18.88	19.43	18.10	16.39	16.02	14.83	16.08	15.74

July 27, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.85
= 37.06

Days of Inventory on Hand (DOH) measures how long, on average, a company holds its inventory before selling it. A lower DOH indicates that inventory is turning over quickly, which is generally favorable as it signifies efficient inventory management.

Analyzing Cisco Systems Inc's DOH over the past few years, we observe a decreasing trend, indicating improvement in inventory turnover efficiency. From 39.03 days in July 2023, the DOH has steadily declined to 37.06 days in July 2024. This suggests that Cisco has been managing its inventory more effectively, potentially leading to lower carrying costs and minimized risk of obsolete inventory.

Comparing quarterly data, we see some fluctuations in the DOH metric, but the overall trajectory remains downward, signaling ongoing efforts to optimize inventory levels. The decreasing trend in DOH is a positive sign for Cisco as it implies that the company is becoming more agile in responding to demand fluctuations and aligning its inventory with market needs.

In conclusion, Cisco Systems Inc's decreasing trend in Days of Inventory on Hand reflects efficient inventory management practices and a focus on optimizing working capital. This improvement is an encouraging sign of the company's operational efficiency and its ability to adapt to market dynamics.