Digi International Inc (DGII)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		3.26	2.59	2.35	3.23	2.62
DOH	days	111.84	140.96	155.44	112.92	139.12

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.26
= 111.84

Digi International Inc's days of inventory on hand (DOH) has shown fluctuations over the past five years. In 2024, the company reported a DOH of 111.84 days, which reflects an improvement compared to the previous year's DOH of 140.96 days. This decrease in DOH could indicate better inventory management practices or potentially higher sales efficiency.

When comparing the current DOH to the figures of the previous years, it is evident that there have been fluctuations in inventory turnover efficiency. In 2023 and 2020, the DOH stood at 140.96 days and 139.12 days respectively, indicating potential challenges in managing inventory levels efficiently during those periods.

However, in 2022, the DOH spiked to 155.44 days, which suggests that the company may have faced inventory management issues that year. On the other hand, in 2021, the DOH decreased to 112.92 days, indicating a more efficient inventory turnover compared to the surrounding years.

Overall, analyzing the trend in DOH can provide insights into the company's inventory management efficiency, potential sales trends, and the effectiveness of supply chain operations. Further investigation into the factors influencing these fluctuations could help assess the company's operational performance and strategic decision-making related to inventory management.