KLA-Tencor Corporation (KLAC)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.29 | 1.47 | 1.67 | 1.76 | 1.87 | |
| DOH | days | 281.99 | 248.92 | 218.13 | 207.42 | 195.34 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.29
= 281.99
The days of inventory on hand (DOH) for KLA-Tencor Corporation has shown a consistent trend of increasing over the past five years. From June 30, 2020, to June 30, 2024, the DOH has risen from 195.34 days to 281.99 days, indicating that, on average, the company has been holding onto inventory for a longer period before being sold. This may suggest potential inefficiencies in inventory management or challenges in forecasting and aligning production with demand.
The increasing trend in DOH could lead to higher holding costs, risk of obsolescence, and reduced liquidity, as cash is tied up in inventory for a longer period. It is essential for KLA-Tencor Corporation to closely monitor and address the factors contributing to the rising DOH to optimize inventory levels, improve operational efficiency, and enhance overall financial performance.
Peer comparison
Jun 30, 2024