Fortinet Inc (FTNT)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		7.16	11.20	13.03	12.69	13.11
DOH	days	50.94	32.59	28.01	28.75	27.84

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.16
= 50.94

The days of inventory on hand (DOH) for Fortinet Inc have shown fluctuations over the past five years. In 2023, the DOH increased to 143.03 days from 89.02 days in 2022, indicating that the company held inventory for a longer period before selling it. This significant increase may suggest potential issues with inventory management or a slow turnover of inventory.

Comparing it to previous years, Fortinet Inc's DOH was lower in 2021 at 81.95 days, but increased again in 2022. The DOH was relatively consistent in 2020 and 2019 at around 89-85 days.

A high DOH can tie up capital in inventory and may suggest inefficiencies in inventory management, excess inventory levels, or challenges in forecasting demand accurately. It is important for the company to monitor and optimize its inventory levels to ensure efficient operations and improve cash flow.