Harmonic Inc (HLIT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.46 | 3.77 | 5.42 | 8.87 | 10.56 | |
| DOH | days | 66.83 | 96.86 | 67.32 | 41.14 | 34.58 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.46
= 66.83
The days of inventory on hand (DOH) is a measure of how long, on average, a company holds its inventory before selling it. In the case of Harmonic, Inc., there has been fluctuation in the DOH over the past five years.
In 2019, the company held its inventory for approximately 58.94 days before selling it, which increased to 69.55 days in 2020. Subsequently, there was a significant jump to 105.03 days in 2021, reflecting a slower rate of inventory turnover. However, in 2022, the DOH increased further to 142.83 days, indicating a more prolonged period of holding inventory.
The most recent data for 2023 shows a decrease in the DOH to 103.78 days. This could suggest that Harmonic, Inc. has improved its inventory management practices or experienced an increase in sales relative to its inventory levels.
Overall, the fluctuation in the DOH for Harmonic, Inc. highlights the importance of monitoring inventory turnover efficiency to ensure optimal utilization of resources and timely conversion of inventory into sales. Management should continue to evaluate and adjust inventory levels to strike a balance between meeting customer demand and avoiding excessive holding costs.
Peer comparison
Dec 31, 2023