Keysight Technologies Inc (KEYS)

Days of inventory on hand (DOH)

		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	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Inventory turnover		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	4.46	7.13	7.00
DOH	days	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	81.87	51.20	52.15

January 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.26
= 111.80

Keysight Technologies Inc's Days of Inventory on Hand (DOH) has shown a varying trend over the past eight quarters. In Q1 2024, the company had an average of 198.81 days of inventory on hand, which increased from 186.09 days in Q4 2023. This rise indicates a potential slowdown in inventory turnover efficiency. However, when compared to the prior quarters, the DOH has been fluctuating within a range of 158.97 to 198.81 days over the last two years.

The increasing trend in DOH may suggest that Keysight Technologies Inc is holding onto its inventory for a longer period before selling it, which could tie up capital and indicate potential inefficiencies in inventory management. Analyzing changes in DOH alongside sales trends and industry benchmarks can provide additional insights into the effectiveness of the company's inventory control and demand forecasting.

It is important for investors and stakeholders to closely monitor DOH to ensure that Keysight Technologies Inc maintains a balance between optimizing inventory levels to meet customer demand promptly while avoiding excess holding costs and potential obsolescence.