Illumina Inc (ILMN)

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		2.76	2.76	3.00	2.97	3.00	2.80	2.73	2.79	2.84	2.83	2.94	3.12	3.19	3.28	3.27	3.09	2.78	2.42	2.29	2.74
DOH	days	132.13	132.35	121.67	122.79	121.81	130.36	133.65	130.74	128.61	128.89	124.14	116.89	114.58	111.39	111.50	118.10	131.06	151.02	159.73	132.98

December 31, 2024 calculation

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

The days of inventory on hand (DOH) for Illumina Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates a gradual decrease in DOH from 132.98 days on March 31, 2020, to 121.67 days on June 30, 2024, followed by a slight increase to 132.13 days on December 31, 2024.

Overall, Illumina Inc has managed to efficiently manage its inventory levels, with a lower number of days of inventory on hand indicating effective inventory turnover and potentially lower storage costs. However, the increase in DOH towards the end of the period may indicate a need for a closer review of inventory management practices to avoid tying up excessive capital in inventory.

It would be beneficial for Illumina Inc to monitor its inventory turnover ratios and compare them with industry benchmarks to ensure optimal inventory management and operational efficiency. Additionally, proactive inventory planning and forecasting could help in maintaining an appropriate balance between inventory levels and customer demand.