KLA-Tencor Corporation (KLAC)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.29 | 1.29 | 1.28 | 1.37 | 1.47 | 1.54 | 1.63 | 1.59 | 1.67 | 1.71 | 1.75 | 1.73 | 1.76 | 1.81 | 1.76 | 1.77 | 1.87 | 1.91 | 1.85 | 1.67 | |
| DOH | days | 281.99 | 282.85 | 284.97 | 266.20 | 248.92 | 237.05 | 224.58 | 230.11 | 218.13 | 213.68 | 208.43 | 211.15 | 207.42 | 201.97 | 207.24 | 206.37 | 195.34 | 190.60 | 197.08 | 218.81 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.29
= 281.99
The days of inventory on hand (DOH) for KLA-Tencor Corporation have exhibited fluctuations over the past several quarters. The DOH has generally been on an upward trend, indicating that the company has been holding inventory for increasingly longer periods. This could suggest potential issues with inventory management efficiency or changes in demand patterns for the company's products.
Specifically, the DOH increased from 190.60 days at the end of March 2020 to 281.99 days at the end of June 2024, reflecting a notable rise over this period. While some variability is expected in inventory levels, such a significant increase in the DOH may raise concerns regarding the company's ability to effectively manage its inventory levels and adapt to changing market conditions.
It is important for KLA-Tencor Corporation to closely monitor its inventory management practices and strive to strike a balance between ensuring adequate inventory levels to meet customer demand and avoiding excessive holding costs associated with excess inventory. Additionally, further analysis of the factors contributing to the prolonged DOH trend, such as production inefficiencies, supply chain disruptions, or shifts in customer demand, may be necessary to address any underlying issues and optimize the company's inventory management strategy.
Peer comparison
Jun 30, 2024
See also:
KLA-Tencor Corporation Average Inventory Processing Period (Quarterly Data)