IPG Photonics Corporation (IPGP)

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		2.19	2.07	1.63	1.62	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
DOH	days	166.32	176.00	223.51	225.39	222.31	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.19
= 166.32

The days of inventory on hand (DOH) is a financial ratio used to evaluate how many days it takes for a company to sell its inventory. For IPG Photonics Corporation, the DOH has varied over the past few years.

From March 31, 2020, to June 30, 2022, the DOH generally increased, indicating that the company was holding onto inventory for longer periods. This could suggest potential inefficiencies in inventory management or challenges in matching production levels with sales demand.

However, from September 30, 2022, to December 31, 2024, there was a notable decline in the DOH. This indicates that IPG Photonics Corporation improved its inventory turnover efficiency during this period. A decrease in DOH can be a positive sign, as it could lead to lower carrying costs and a more streamlined supply chain.

The spike in DOH observed on June 30, 2022, and September 30, 2022, may merit further investigation to understand the factors behind this increase and determine if it represents a temporary issue or a potential ongoing concern for the company.

Overall, monitoring the days of inventory on hand can provide valuable insights into IPG Photonics Corporation's inventory management practices and operational efficiency. Periodic fluctuations in this ratio can indicate changes in the company's inventory strategy and suggest areas for improvement in managing its working capital effectively.