Illumina Inc (ILMN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.76	3.00	2.84	3.18	2.78
DOH	days	132.13	121.74	128.61	114.66	131.06

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.76
= 132.13

The days of inventory on hand (DOH) for Illumina Inc has fluctuated over the past five years. As of December 31, 2020, the company had an inventory turnover period of 131.06 days, indicating that it took approximately 131 days to sell its inventory on hand. Over the subsequent years, there was some improvement in inventory management efficiency as the DOH decreased to 114.66 days by December 31, 2021, before increasing slightly to 128.61 days by December 31, 2022.

In December 31, 2023, the DOH decreased to 121.74 days but then increased again to 132.13 days by December 31, 2024. This suggests that Illumina Inc may have experienced challenges in effectively managing its inventory levels, leading to longer periods to sell off its inventory in some years.

Overall, fluctuations in the days of inventory on hand may reflect changes in sales volumes, production processes, demand forecasting accuracy, or inventory management strategies within the company. Evaluating the trend in DOH can help assess the effectiveness of Illumina's inventory management practices and their impact on the company's working capital and profitability.