Gen Digital Inc. (GEN)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jul 5, 2019
Inventory turnover		—	5.01	33.05	30.27	19.00	16.67	14.23	7.29	7.29	7.00	6.69	1.59	1.55	1.33	1.39	0.88	1.46	1.90	0.06	—
DOH	days	—	72.90	11.05	12.06	19.21	21.90	25.64	50.10	50.10	52.14	54.56	229.81	234.93	273.75	262.10	413.60	250.76	192.06	6,023.78	—

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Days of Inventory on Hand (DOH) is a financial ratio that measures the number of days a company holds its inventory before it is sold. This ratio helps assess how efficiently a company manages its inventory levels.

Looking at the trend for Gen Digital Inc.'s DOH over the past few quarters, we observe significant fluctuations. The DOH ranged from as low as 11.05 days in December 2023 to highs of 413.60 days in June 2020 and a staggering 6,023.78 days in December 2019. These extreme values indicate potential issues in inventory management.

A high DOH implies slow inventory turnover, which could lead to increased carrying costs, obsolescence, and potentially lower profitability due to tied-up capital. On the other hand, a low DOH suggests more efficient inventory management and quicker turnover, which can lead to cost savings and improved cash flow.

It's crucial for Gen Digital Inc. to analyze the reasons behind such fluctuations in DOH, identify any inefficiencies in inventory management, and implement strategies to optimize inventory levels. Regular monitoring and control of inventory levels will be essential to ensure smoother operations and improved financial performance in the future.