Masimo Corporation (MASI)

Days of inventory on hand (DOH)

		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	Mar 31, 2020
Inventory turnover		4.68	3.00	3.29	3.27	3.15	3.04	3.33	3.89	3.13	2.46	1.94	2.01	2.14	2.11	2.04	1.94	1.86	1.82	2.23	2.70
DOH	days	77.98	121.84	110.91	111.52	115.76	120.15	109.63	93.73	116.52	148.43	188.38	181.95	170.61	173.22	178.83	188.35	196.72	200.31	163.34	135.41

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.68
= 77.98

The days of inventory on hand (DOH) for Masimo Corporation have shown fluctuations over the given time period.

From March 31, 2020, to September 30, 2021, the DOH steadily increased from 135.41 days to 173.22 days, indicating that the company was holding inventory for a longer period. There was a peak at 200.31 days on September 30, 2020, which may suggest potential issues with inventory management or demand forecasting during that period.

However, from December 31, 2021, to December 31, 2024, there was a declining trend in DOH, reaching a low of 77.98 days on December 31, 2024. This decrease could imply improved inventory management practices, such as better demand forecasting, efficient production processes, or effective inventory control.

The significant drop in DOH from September 30, 2022 (148.43 days) to December 31, 2022 (116.52 days) and further down to 93.73 days on March 31, 2023, may indicate proactive efforts by the company to streamline its inventory management processes.

Overall, a decreasing trend in DOH is generally considered positive as it signifies that Masimo Corporation is more effectively managing its inventory levels, optimizing production, and potentially reducing carrying costs associated with excess inventory.