Kratos Defense & Security Solutions (KTOS)
Days of inventory on hand (DOH)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.97 | 5.26 | 5.34 | 5.45 | 5.08 | 4.96 | 5.03 | 5.00 | 5.26 | 5.39 | 5.31 | 5.10 | 5.49 | 6.39 | 6.47 | 6.54 | 6.59 | 6.71 | 6.76 | 7.77 | |
| DOH | days | 73.49 | 69.33 | 68.34 | 67.01 | 71.91 | 73.55 | 72.61 | 72.95 | 69.38 | 67.67 | 68.71 | 71.62 | 66.54 | 57.08 | 56.39 | 55.80 | 55.40 | 54.43 | 54.02 | 46.99 |
March 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.97
= 73.49
The analysis of Kratos Defense & Security Solutions’ days of inventory on hand (DOH) over the period from June 30, 2020, to March 31, 2025, indicates a trend of increasing inventory holding periods with some fluctuations.
Initially, the DOH was approximately 46.99 days at June 30, 2020. This figure increased notably through subsequent quarters, reaching 54.02 days by September 30, 2020, and gradually rising further to approximately 57.08 days by December 31, 2021. This upward trajectory suggests a lengthening of inventory turnover periods, indicative of either increased inventory levels or slower inventory turnover.
From March 31, 2022, onward, the DOH experienced more pronounced growth, peaking at around 72.95 days by June 30, 2023. During this period, the inventory on hand consistentlly expanded, which could reflect inventory accumulation possibly driven by strategic stockpiling, longer lead times, or decreased sales velocity.
Subsequently, there was a slight stabilization and minor fluctuations, with the DOH remaining within the range of approximately 68 to 73 days through September 30, 2024. The latest data point for March 31, 2025, shows a DOH of 73.49 days, slightly above earlier peaks, indicating that inventory holding times have been sustained at elevated levels relative to the initial period.
Overall, from mid-2020 onward, Kratos has experienced a progressive increase in inventory days on hand, moving from approximately 47 to over 73 days. This trend suggests a longer inventory cycle, which may have implications for working capital management, potential inventory obsolescence risks, or changes in supply chain and production strategies. The relative stability of the DOH in recent periods portrays a period of equilibrium, albeit at higher levels than in the initial years.
Peer comparison
Mar 31, 2025