Alphabet Inc Class C (GOOG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		—	47.27	94.82	116.39	71.97
DOH	days	—	7.72	3.85	3.14	5.07

December 31, 2023 calculation

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

Alphabet Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years. In 2019, the company had 5.07 days of inventory on hand, which decreased to 3.14 days in 2021, indicating an improvement in inventory management efficiency. However, there was a slight increase to 3.85 days in 2022 and a further rise to 7.72 days in 2023, which may suggest a buildup of inventory.

A higher DOH value generally indicates that a company is holding onto more inventory for a longer period, which could tie up working capital and lead to higher storage costs. It could also signal potential issues in demand forecasting or inventory management practices.

Alphabet Inc should closely monitor its inventory levels and strive to optimize its inventory turnover to maintain a balance between meeting customer demand while controlling inventory costs. A proactive approach to inventory management can help enhance operational efficiency and financial performance in the long run.