Diodes Incorporated (DIOD)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.84	2.57	3.26	3.26	2.60
DOH	days	198.06	141.76	112.08	112.13	140.43

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.84
= 198.06

The days of inventory on hand (DOH) for Diodes Incorporated have exhibited fluctuations over the past five years.

In December 2020, the DOH stood at 140.43 days, indicating that on average, Diodes held inventory for approximately 140 days before it was sold. Subsequently, there was a decrease in DOH to 112.13 days by December 2021, suggesting an improvement in inventory management efficiency.

By December 2022, the DOH remained relatively stable at 112.08 days, indicating continued effective management of inventory levels. However, there was a noticeable increase in DOH to 141.76 days by December 2023, signifying a potential challenge in efficiently converting inventory into sales.

The most significant increase was observed by December 2024, with the DOH reaching 198.06 days, the highest level in the five-year period. This sharp rise in DOH might indicate difficulties in managing and selling inventory promptly, which could lead to increased holding costs and potentially obsolete inventory concerns.

Overall, the analysis of Diodes Incorporated's days of inventory on hand highlights both improvements and challenges in inventory management efficiency over the past five years, suggesting a need for continued monitoring and potential optimization of inventory practices.