Ichor Holdings Ltd (ICHR)

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		3.00	3.04	3.09	2.89	2.88	2.91	3.37	3.73	3.77	3.63	3.38	3.58	3.89	4.59	5.21	5.71	5.86	5.39	4.56	4.23
DOH	days	121.73	120.21	117.98	126.29	126.81	125.31	108.34	97.97	96.93	100.50	107.83	102.06	93.74	79.55	70.09	63.88	62.31	67.66	79.99	86.26

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.00
= 121.73

Days of Inventory on Hand (DOH) is a financial ratio used to measure how many days, on average, a company holds its inventory before selling it. A lower DOH indicates faster turnover of inventory, while a higher DOH suggests slower turnover.

Analyzing the historical trend of Ichor Holdings Ltd's DOH, we observe a general increase in the ratio over the years. The DOH increased from 86.26 days as of March 31, 2020, to a peak of 126.81 days by December 31, 2023, before slightly declining in the subsequent periods. This indicates a potential inefficiency in managing inventory as the company took longer to sell its inventory during this period.

The period from March 31, 2024, to December 31, 2024, shows a relatively stable DOH ranging between 117.98 to 121.73 days, suggesting that the company may have implemented inventory management strategies to stabilize the turnover of inventory during this time.

Overall, the increasing trend in DOH up to 2023 and the subsequent stabilization in 2024 may signal the need for Ichor Holdings Ltd to review its inventory management practices to improve efficiency and reduce the holding period of inventory, which could positively impact the company's working capital and profitability in the long run.