Digi International Inc (DGII)

Days of inventory on hand (DOH)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Inventory turnover		3.26	3.20	3.01	2.81	2.59	2.29	2.27	2.26	2.35	2.62	2.94	2.82	3.23	2.99	2.68	2.48	2.62	2.88	3.09	2.84
DOH	days	111.84	113.96	121.42	129.95	140.96	159.59	160.51	161.24	155.44	139.26	123.99	129.49	112.92	122.22	136.35	147.42	139.12	126.78	118.01	128.59

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 some fluctuations over the past few years. The company's inventory turnover efficiency can be analyzed using this metric.

The trend indicates that the DOH has generally been on the higher side, reflecting that the company might be holding onto its inventory for a longer period before converting it into sales. A higher DOH can tie up working capital and increase storage and holding costs.

The spike in DOH observed in the recent quarters (e.g., 161.24 days in Dec 2022) could suggest potential inventory management challenges or slower sales turnover during those periods. However, it is positive to note that the DOH has decreased in more recent periods (e.g., 111.84 days in Sep 2024), indicating a potentially more efficient inventory management approach.

Overall, Digi International Inc should continue monitoring and managing its inventory levels effectively to optimize its working capital and ensure a healthy balance between maintaining sufficient inventory levels to meet demand and minimizing excess holding costs.