Fortinet Inc (FTNT)

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		7.16	7.26	8.69	10.31	11.20	12.99	13.56	13.44	13.03	12.03	13.21	12.36	12.69	12.70	13.10	15.34	13.11	14.89	16.72	15.63
DOH	days	50.94	50.29	42.02	35.41	32.59	28.09	26.92	27.16	28.01	30.34	27.62	29.53	28.75	28.73	27.87	23.79	27.84	24.51	21.83	23.35

December 31, 2023 calculation

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

Days of Inventory on Hand (DOH) is a crucial metric for Fortinet Inc, reflecting the average number of days it takes the company to sell its inventory. A higher DOH may indicate slow-moving inventory or potential excess stock, while a lower DOH suggests efficient inventory management.

Analyzing the trend in Fortinet's DOH over the past eight quarters, a noticeable increase is observed from Q1 2022 to Q4 2023. The DOH has steadily risen from 76.55 days in Q1 2022 to 143.03 days in Q4 2023. This upward trend indicates a lengthening of the inventory holding period, possibly signaling challenges in inventory turnover efficiency.

It's worth noting the spike in DOH from Q2 2023 to Q4 2023, where there was a significant jump from 116.01 days to 143.03 days. This sharp increase could raise concerns about potential issues in inventory management, such as overstocking or slow sales.

In contrast, the lowest DOH was observed in Q2 2022 at 75.47 days, suggesting a period of more efficient inventory turnover. However, the subsequent increase in DOH in the following quarters indicates a shift towards a longer inventory holding period.

Overall, the rising trend in Fortinet's DOH highlights the importance of closely monitoring and potentially optimizing inventory management strategies to ensure efficient operations and improved financial performance in the future.