Harmonic Inc (HLIT)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 4.89 3.52 2.56 3.48 5.25
DOH days 74.68 103.78 142.83 105.03 69.55

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.89
= 74.68

The days of inventory on hand (DOH) for Harmonic Inc has shown fluctuating trends over the past five years. Beginning at 69.55 days as of December 31, 2020, the DOH increased to 105.03 days by December 31, 2021, indicating a significant rise in the amount of time inventory was held by the company.

Subsequently, the DOH continued to climb to 142.83 days by December 31, 2022, reaching its highest point in the analyzed period. This prolonged inventory holding period could suggest potential inefficiencies in inventory management or challenges in accurately forecasting demand.

However, there was a notable decrease in the DOH to 103.78 days by December 31, 2023, indicating some improvement in inventory turnover efficiency. The company may have implemented strategies to reduce excess inventory levels during this period.

By December 31, 2024, the DOH had decreased further to 74.68 days, showing a more efficient management of inventory levels compared to previous years. It is crucial for Harmonic Inc to continue monitoring and optimizing its inventory management practices to ensure effective utilization of resources and maintain healthy liquidity levels.