InterDigital Inc (IDCC)
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 | — | 5.81 | — | — | 3.66 | 2.87 | 2.26 | — | — | 3.20 | 3.60 | 5.45 | 1.38 | 6.25 | 5.50 | 4.04 | — | — | — | — | |
| DOH | days | — | 62.85 | — | — | 99.69 | 127.13 | 161.60 | — | — | 114.23 | 101.53 | 67.00 | 264.75 | 58.40 | 66.40 | 90.25 | — | — | — | — |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
InterDigital Inc's days of inventory on hand (DOH) provides insight into how efficiently the company manages its inventory. Looking at the data provided, we observe fluctuations in the DOH ratio over the quarters.
In March 2021, the company had 90.25 days of inventory on hand, indicating that it had a significant amount of inventory relative to its sales level at that time. However, by September 2021, the DOH reduced to 58.40 days, suggesting an improvement in inventory management efficiency.
The DOH ratio spiked to 264.75 days by the end of December 2021, indicating that InterDigital had a substantial amount of unsold inventory relative to its sales. This sharp increase could be a cause for concern as it may lead to obsolescence or carrying costs.
The trend continued into the first half of 2022, with a DOH of 101.53 days by June, showing that inventory management was still a challenge for the company. This ratio further increased to 114.23 days by September 2022.
However, there was a significant improvement in the efficiency of managing inventory in the following quarters. The DOH decreased to 62.85 days by September 2024, indicating that InterDigital was able to lower its excess inventory levels and improve its inventory turnover.
Overall, the analysis of InterDigital Inc's DOH reveals fluctuations in inventory management efficiency over the quarters, with periods of high and low inventory levels. The company should continue to monitor and optimize its inventory levels to ensure it aligns with demand and doesn't tie up excess capital.
Peer comparison
Dec 31, 2024