Ichor Holdings Ltd (ICHR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.34	4.20	4.28	6.46	4.75
DOH	days	109.23	86.87	85.23	56.52	76.82

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.34
= 109.23

The days of inventory on hand (DOH) for Ichor Holdings Ltd have been fluctuating over the past five years. In 2023, the DOH increased to 109.23 days from 86.87 days in 2022, indicating that the company is carrying its inventory for a longer period before selling it. This could potentially suggest inefficiencies in inventory management or a slower rate of inventory turnover.

Comparing 2023 to earlier years, the DOH has been on an upward trend since 2020 when it was 56.52 days. This increase suggests that the company may be facing challenges in managing its inventory efficiently to meet customer demand in a timely manner.

In 2021 and 2019, the DOH was 85.23 days and 76.82 days, respectively, indicating that inventory turnover was slower in 2021 compared to 2019, but it was still lower than in 2023. Overall, the increasing trend in DOH over the past few years may indicate potential risks related to excess or obsolete inventory, which could impact the company's cash flow and profitability. Management should closely monitor and improve inventory management practices to optimize working capital and enhance operational efficiency.