Garmin Ltd (GRMN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Inventory turnover		2.54	2.35	2.57	2.48	2.32	2.11	2.10	1.95	1.89	1.75	1.84	2.01	2.10	2.44	2.81	2.88	3.03	2.66	2.57	2.67
DOH	days	143.85	155.42	142.22	147.12	157.50	172.80	173.47	186.92	193.35	208.58	197.98	181.70	173.79	149.81	129.88	126.79	120.40	137.31	141.90	136.46

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 a fluctuating trend over the past several quarters. The DOH was relatively stable around the 130-day mark from March 2020 to June 2021. However, there was a notable increase in DOH starting from September 2021, reaching a peak of 208.58 days by September 30, 2022. This significant rise in DOH could indicate potential issues with inventory management efficiency or slowing sales.

Subsequently, there was a decrease in DOH to 142.22 days by June 30, 2024, suggesting improvements in inventory turnover or sales performance. The DOH remained relatively stable around this level throughout the following quarters, indicating a better balance between inventory levels and sales demand.

Overall, the analysis of Garmin Ltd's DOH highlights the importance of monitoring inventory levels closely to ensure optimal working capital management and operational efficiency. A high DOH can tie up capital in inventory and indicate potential risks, while a low DOH may result in stockouts and lost sales opportunities. Tracking changes in DOH over time can provide valuable insights into the company's inventory management practices and performance.