Fortinet Inc (FTNT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.67	2.55	4.10	4.45	4.08
DOH	days	99.48	143.03	89.02	81.95	89.52

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.67
= 99.48

The days of inventory on hand (DOH) of Fortinet Inc has shown some fluctuation over the years based on the provided data. In December 2020, the company had 89.52 days of inventory on hand, which decreased to 81.95 days by December 2021. Subsequently, by December 2022, the DOH increased to 89.02 days. However, there was a significant spike in inventory holding period by December 2023, with 143.03 days reported, indicating slower inventory turnover. The DOH then decreased to 99.48 days by December 2024.

The fluctuations in DOH could be indicative of changes in the company's inventory management efficiency and working capital strategies. A lower DOH suggests that the company is selling inventory more quickly, while a higher DOH may indicate excess inventory levels or slower sales. It would be important for Fortinet Inc to analyze the reasons behind these changes and take appropriate measures to optimize inventory levels and turnover to improve overall operational efficiency.