Garmin Ltd (GRMN)

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		2.14	1.95	1.94	1.79	1.89	1.75	1.84	2.01	2.10	2.44	2.81	2.88	3.03	2.66	2.57	2.67	2.75	2.63	2.97	3.19
DOH	days	170.30	187.22	188.43	203.43	193.35	208.58	197.98	181.70	173.79	149.81	129.88	126.79	120.40	137.31	141.90	136.46	132.87	138.81	122.96	114.51

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.14
= 170.30

Garmin Ltd's days of inventory on hand (DOH) have shown fluctuations over the past few years. The DOH has generally been on an upward trend, indicating an increase in the number of days it takes for the company to sell its inventory. This may suggest potential issues with inventory management efficiency or changes in demand patterns.

In recent periods, Garmin's DOH has ranged from 170.30 days to 208.58 days. The highest DOH was recorded on Sep 30, 2022, at 208.58 days, while the lowest was on Dec 31, 2020, at 120.40 days. This variability could be attributed to factors such as seasonality, economic conditions, or product mix.

Overall, a higher DOH implies a longer time for Garmin to convert its inventory into sales, potentially tying up more capital in inventory and increasing carrying costs. It may be necessary for Garmin to review its inventory management strategies to optimize the level of inventory on hand, improve turnover, and enhance overall operational efficiency.