Garmin Ltd (GRMN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.54	2.29	1.89	2.27	3.03
DOH	days	143.85	159.05	193.35	160.72	120.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.54
= 143.85

The days of inventory on hand (DOH) for Garmin Ltd have shown fluctuations over the past five years. In December 31, 2020, the company had 120.40 days worth of inventory on hand, which then increased to 160.72 days by December 31, 2021. This upward trend continued as the DOH further rose to 193.35 days by December 31, 2021, indicating that the company may have been holding onto inventory for a longer period.

However, in December 31, 2023, there was a decrease in the DOH to 159.05 days, suggesting a potential improvement in inventory management efficiency. The trend continued in December 31, 2024, as the DOH decreased further to 143.85 days, indicating that the company may have worked towards optimizing its inventory levels.

Overall, the fluctuations in Garmin Ltd's DOH in recent years indicate that the company has been actively managing its inventory levels to balance between avoiding stockouts and minimizing holding costs. Further analysis would be required to understand the specific factors driving these changes and their impact on the company's overall financial performance.