Ichor Holdings Ltd (ICHR)

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		3.30	3.31	3.78	4.13	4.17	4.03	3.75	3.95	4.26	4.98	5.66	6.22	6.42	5.94	5.05	4.72	4.72	5.21	5.21	5.71
DOH	days	110.57	110.25	96.64	88.29	87.52	90.67	97.26	92.35	85.67	73.26	64.53	58.68	56.89	61.44	72.26	77.32	77.36	70.06	70.11	63.95

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.30
= 110.57

The days of inventory on hand (DOH) for Ichor Holdings Ltd have shown some fluctuation over the past few years. From March 31, 2019, to September 30, 2021, the DOH ranged from 63.95 days to 85.67 days, indicating some variability in the company's inventory management efficiency during this period.

However, from September 30, 2021, onwards, there appears to be a decreasing trend in the DOH, with the metric consistently declining to 110.57 days as of December 31, 2023. This downward trend suggests that Ichor Holdings Ltd has been able to manage its inventory more effectively and efficiently in recent periods, potentially reducing carrying costs and improving cash flow.

The company's ability to reduce its DOH over time is a positive indicator of improved inventory management practices, which could lead to better working capital management and profitability. It shows that Ichor Holdings Ltd may be optimizing its inventory levels and turnover to meet customer demand more efficiently and minimize excess stock, which could positively impact the company's financial performance.