Cisco Systems Inc (CSCO)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Jul 27, 2024	Apr 30, 2024	Apr 27, 2024	Jan 31, 2024	Jan 27, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022
Inventory turnover		7.96	7.33	7.85	7.71	7.99	8.15	8.02	8.35	8.39	8.46	7.78	7.70	7.85	7.84	8.58	8.58	10.03	9.82	8.77	9.70
DOH	days	45.84	49.80	46.51	47.34	45.70	44.80	45.52	43.73	43.49	43.14	46.89	47.37	46.49	46.58	42.52	42.54	36.39	37.18	41.63	37.62

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.96
= 45.84

The days of inventory on hand (DOH) for Cisco Systems Inc have fluctuated over the past few years. The trend indicates that the company has been able to manage its inventory efficiently for the most part.

From July 2022 to July 2023, the DOH remained relatively stable, ranging from 37.62 days to 47.37 days. However, from October 2023 to October 2024, there was a slight increase in the DOH, reaching a high of 49.80 days in October 2024.

The increase in the DOH indicates that Cisco may be holding more inventory on hand, which could tie up working capital and potentially lead to higher carrying costs. It could also suggest changes in sales patterns or production delays affecting the company's inventory management.

Overall, Cisco Systems Inc should continue to monitor and optimize its inventory management processes to ensure that the DOH remains at an optimal level to balance the cost of holding inventory with the need to fulfill customer demand efficiently.