FormFactor Inc (FORM)

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		4.57	4.86	4.68	4.95	4.94	4.50	4.06	4.67	5.33	5.25	5.32	5.42	5.53	5.52	5.69	6.27	5.75	5.31	5.41	5.39
DOH	days	79.95	75.04	78.04	73.78	73.84	81.16	89.87	78.20	68.49	69.57	68.56	67.39	66.00	66.15	64.13	58.22	63.44	68.77	67.50	67.67

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.57
= 79.95

FormFactor Inc's days of inventory on hand (DOH) have shown some fluctuations over the past few years. The trend indicates that the company has been able to manage its inventory levels relatively well.

Looking at the most recent data, as of December 31, 2023, the company had an inventory turnover cycle of approximately 79.95 days, indicating that, on average, it takes about 79.95 days for the company to sell its inventory. Compared to the previous quarters, there has been a slight increase in DOH, which might signal a slower inventory turnover rate or potentially excess inventory levels.

Taking a broader view, over the past five years, FormFactor Inc has seen fluctuations in its DOH metric. The company experienced a peak in DOH in the second quarter of 2022 at 89.87 days, which was followed by a decline to 58.22 days in the first quarter of 2020, indicating an improvement in inventory management efficiency.

In conclusion, while the recent uptick in DOH may warrant further investigation into inventory management practices, the overall trend suggests that FormFactor Inc has been able to maintain a reasonable level of control over its inventory turnover cycle. It is crucial for the company to monitor and optimize its inventory management to ensure efficient operations and profitability.