Alphabet Inc Class C (GOOG)

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		—	44.34	57.83	54.95	47.27	39.24	60.76	85.05	94.82	81.40	107.53	101.19	116.39	95.42	93.40	84.21	71.97	49.10	67.95	58.97
DOH	days	—	8.23	6.31	6.64	7.72	9.30	6.01	4.29	3.85	4.48	3.39	3.61	3.14	3.83	3.91	4.33	5.07	7.43	5.37	6.19

December 31, 2023 calculation

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

The Days of Inventory on Hand (DOH) for Alphabet Inc have exhibited fluctuations over the past eight quarters. The trend shows a general decrease in DOH from Q1 2022 to Q3 2023, with an exception of a slight increase in Q4 2022.

Q1 2022 had the highest DOH at 9.30 days, indicating that on average, Alphabet Inc held inventory for about 9.30 days before it was sold. Subsequently, there was a downward trend in DOH, reaching a low of 4.29 days in Q2 2022, before showing a mild increase in Q3 2023.

The reduction in DOH suggests that the company has been managing its inventory more efficiently over time. Lower DOH values indicate that Alphabet Inc is selling its products faster or managing its inventory levels more effectively, which can lead to cost savings and improved cash flow efficiency.

A low DOH can also imply better responsiveness to changes in demand and a lower risk of holding obsolete inventory. However, it is important for the company to strike a balance to avoid stockouts and maintain customer satisfaction.

Overall, the decreasing trend in DOH for Alphabet Inc reflects a positive development in inventory management efficiency, potentially contributing to improved financial performance and operational effectiveness.