Harmonic Inc (HLIT)

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 4.99 4.20 3.38 3.31 3.55 2.78 2.64 2.31 2.56 3.11 3.53 3.29 3.48 4.43 5.00 5.59 5.25 5.01 5.56 5.26
DOH days 73.21 86.99 107.97 110.20 102.70 131.13 138.02 157.84 142.83 117.23 103.53 110.92 105.03 82.47 72.95 65.32 69.55 72.86 65.61 69.41

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.99
= 73.21

Based on the data provided for Harmonic Inc's days of inventory on hand (DOH) from March 31, 2020, to December 31, 2024, we observe fluctuations in the efficiency of managing inventory levels over time.

Initially, the DOH stood at 69.41 days in March 2020, indicating that Harmonic Inc held its inventory for approximately 69 days before sale. The company managed to reduce this metric to 65.61 days by June 2020, suggesting an improvement in inventory turnover efficiency.

However, from September 2020 to March 2022, the DOH increased steadily, reaching a peak of 157.84 days in March 2023. This significant rise in DOH implies an extended period of holding inventory before converting it to sales, which may signify inefficiencies in inventory management or challenges in demand forecasting.

Subsequently, there was a notable decline in DOH from March 2023 to June 2024, suggesting efforts to streamline inventory processes. The metric decreased to 73.21 days by December 2024, indicating a return to a more optimal level of inventory turnover.

Overall, the analysis of Harmonic Inc's DOH reveals periods of both efficiency and inefficiency in managing inventory levels. Continuous monitoring and adjustment of inventory management practices can help the company optimize its working capital and improve overall operational performance.