Keysight Technologies Inc (KEYS)

Days of inventory on hand (DOH)

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Inventory turnover		3.40	3.29	3.30	3.26	3.39	3.52	3.63	3.78	3.94	3.91	3.98	4.01	4.19	4.27	4.16	4.03	3.95	3.82	4.00	4.26
DOH	days	107.50	110.86	110.57	111.80	107.61	103.81	100.56	96.53	92.74	93.28	91.73	91.11	87.13	85.56	87.85	90.62	92.38	95.64	91.22	85.70

October 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.40
= 107.50

The days of inventory on hand (DOH) for Keysight Technologies Inc have shown a fluctuating trend over the past few years. It increased from 85.70 days as of July 31, 2020, reaching a peak of 111.80 days as of January 31, 2024, before slightly decreasing to 107.50 days as of October 31, 2024. This indicates that the company, on average, held inventory for around 107 to 111 days before selling it during the given periods.

A higher DOH value suggests that the company is taking a longer time to convert its inventory into sales, which may indicate potential issues such as overstocking, slow-moving inventory, or possibly inefficiencies in the supply chain. On the other hand, a lower DOH value could signify that the company is managing its inventory levels more effectively, which might lead to lower holding costs and a quicker inventory turnover.

It is important for Keysight Technologies Inc to closely monitor and manage its inventory levels to optimize its working capital, reduce carrying costs, and improve overall operational efficiency. Analyzing the DOH ratio in conjunction with other financial metrics can provide a more comprehensive understanding of the company's inventory management practices and operational performance.