IPG Photonics Corporation (IPGP)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		1.64	1.74	1.76	1.73	1.72	1.44	1.43	1.61	1.66	1.74	1.80	1.89	1.81	1.77	1.81	1.89	1.86	1.65	1.58	1.60
DOH	days	222.15	210.07	207.60	210.84	212.69	253.50	255.75	226.64	219.99	210.12	202.79	192.80	201.33	206.56	201.52	192.61	196.21	220.91	230.65	227.88

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.64
= 222.15

The days of inventory on hand (DOH) for IPG Photonics Corp have shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH decreased to 222.15 days compared to the previous quarter. This reduction in DOH indicates that the company was able to sell its inventory more efficiently during this period.

Looking at the trend over the past two years, there was a noticeable peak in Q3 and Q2 of 2022, with DOH reaching 253.50 days and 255.75 days respectively. This suggests that during these periods, the company had excess inventory on hand relative to its sales levels, which could potentially tie up capital and lead to higher holding costs.

In contrast, the most recent quarters have shown a more controlled inventory management approach, with DOH hovering around the 200 to 220-day range. This indicates that IPG Photonics Corp may have implemented more effective inventory control measures to optimize its working capital and improve operational efficiency.

Overall, monitoring the days of inventory on hand can provide insights into a company's inventory management practices and efficiency in converting inventory into sales. IPG Photonics Corp's recent improvements in managing its inventory levels suggest a positive trend towards better working capital management and operational performance.