FormFactor Inc (FORM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.48	3.62	3.67	4.01	4.09
DOH	days	81.44	100.77	99.47	91.10	89.28

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.48
= 81.44

The days of inventory on hand (DOH) for FormFactor Inc have shown a slightly increasing trend over the years, from 89.28 days as of December 31, 2020, to 91.10 days as of December 31, 2021, further increasing to 99.47 days as of December 31, 2022, and 100.77 days as of December 31, 2023. However, there was a notable decrease to 81.44 days as of December 31, 2024.

This may suggest that FormFactor Inc has been carrying its inventory for a longer period, which could indicate potential inefficiencies in inventory management or potential challenges in selling off inventory in a timely manner. The significant decrease in DOH in 2024 could be a positive sign of improvement in managing inventory levels.

It would be beneficial for FormFactor Inc to further evaluate and streamline its inventory management processes to optimize working capital, reduce carrying costs, and ensure that inventory turnover is efficient and aligned with sales demand.