FormFactor Inc (FORM)

Days of inventory on hand (DOH)

		Dec 31, 2024	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
Inventory turnover		4.49	4.18	3.65	3.72	3.62	3.81	3.62	3.84	3.61	3.32	3.04	3.50	4.01	3.92	3.95	4.03	4.09	4.13	4.27	4.63
DOH	days	81.37	87.33	99.90	98.18	100.77	95.85	100.92	95.07	101.23	109.85	120.07	104.20	91.10	93.18	92.31	90.52	89.28	88.42	85.56	78.84

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.49
= 81.37

FormFactor Inc's days of inventory on hand (DOH) has fluctuated over the years according to the provided data.

From March 31, 2020, to December 31, 2021, the DOH increased steadily from 78.84 days to 91.10 days, suggesting that the company was holding inventory for a longer period. This could indicate potential issues with inventory management or changes in demand/supply dynamics.

However, starting from March 31, 2022, the DOH spiked significantly to 104.20 days, reaching its peak at 120.07 days on June 30, 2022. This sharp increase may be a cause for concern as it implies that FormFactor Inc was holding a lot of inventory relative to its level of sales. High inventory levels can tie up capital and increase storage costs.

Subsequently, from September 30, 2022, to December 31, 2024, the DOH fluctuated, showing some signs of improvement as it decreased to 81.37 days by the end of December 31, 2024. This reduction in DOH may suggest efforts by the company to better manage its inventory levels and optimize operations.

Overall, FormFactor Inc's DOH trend over the years indicates some challenges with inventory management, particularly highlighted by the spikes observed in 2022. It would be advisable for the company to focus on optimizing its inventory levels to improve operational efficiency and reduce carrying costs.