F5 Networks Inc (FFIV)

Days of inventory on hand (DOH)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		49.42	51.00	40.85	36.28	30.56	26.20	40.66	63.62	88.26	80.99	75.17	67.57	59.19	54.38	51.83	47.13	42.41	38.25	34.91	36.15
DOH	days	7.39	7.16	8.93	10.06	11.94	13.93	8.98	5.74	4.14	4.51	4.86	5.40	6.17	6.71	7.04	7.74	8.61	9.54	10.46	10.10

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 49.42
= 7.39

F5 Inc's days of inventory on hand (DOH) fluctuated over the past eight quarters, indicating variations in the time the company takes to convert its inventory into sales. The trend shows a gradual decrease in DOH from Q4 2022 to Q1 2024. In Q1 2023, DOH peaked at 38.61 days, highlighting a potential inefficiency in managing inventory levels, but the metric steadily declined thereafter.

By Q1 2024, F5 Inc had managed to reduce its DOH to 22.76 days, which suggests a more efficient inventory turnover process. Overall, the company seems to have made improvements in inventory management, which could lead to lower carrying costs and better alignment with market demand. However, continued monitoring of inventory levels and sales performance is advisable to ensure sustained efficiency in managing inventory turnover.