IPG Photonics Corporation (IPGP)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 2.24 1.64 1.72 1.66 1.81
DOH days 162.67 222.15 212.69 219.99 201.33

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.24
= 162.67

The days of inventory on hand (DOH) for IPG Photonics Corporation have shown some fluctuations over the past five years. In December 2020, the company had an inventory holding period of 201.33 days, which increased to 219.99 days by December 2021. Subsequently, there was a slight decrease to 212.69 days by December 2022. The following year, in December 2023, the DOH increased again to 222.15 days. However, by December 2024, there was a significant improvement as the days of inventory on hand reduced to 162.67 days.

This trend suggests that IPG Photonics Corporation has been managing its inventory levels more effectively in recent years, resulting in a shorter holding period and potentially lower carrying costs. It is important for the company to continue monitoring and optimizing its inventory management practices to ensure efficient use of resources and improved profitability.