Keysight Technologies Inc (KEYS)

Days of inventory on hand (DOH)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Inventory turnover		3.39	3.93	4.19	3.95	4.46
DOH	days	107.61	92.90	87.13	92.38	81.87

October 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.39
= 107.61

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days it takes for a company to sell its inventory. It is calculated by dividing the average inventory by the cost of goods sold and multiplying the result by 365. A higher DOH indicates that the company is taking longer to sell its inventory, which could tie up working capital and increase the risk of obsolescence.

Analyzing the trend in Keysight Technologies Inc's Days of Inventory on Hand over the past five years reveals the following insights:

1. 2023: 186.09 days
2. 2022: 158.97 days
3. 2021: 151.50 days
4. 2020: 163.69 days
5. 2019: 145.46 days

The trend indicates a fluctuating pattern in DOH over the years. The increase in 2023 compared to 2022 suggests that the company was holding onto its inventory for a longer period, which may lead to higher carrying costs and risk of obsolescence. This could be a concern for the company's working capital management and operational efficiency.

However, it's important to note that DOH can be influenced by various factors, including changes in sales volume, inventory management practices, and industry-specific dynamics. A comprehensive analysis would require further examination of the company's sales trends, inventory turnover, and supply chain management to understand the drivers behind the changes in DOH.

In conclusion, the increasing trend in Days of Inventory on Hand for Keysight Technologies Inc raises a flag regarding its inventory management efficiency and working capital utilization. Further investigation into the underlying reasons for the prolonged inventory holding period is necessary to make informed assessments about the company's operational performance.