Masimo Corporation (MASI)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		2.77	2.68	2.94	3.48	3.13	2.46	1.94	2.01	2.14	2.11	2.04	1.94	1.86	1.82	2.23	2.70	2.66	2.76	3.04	3.15
DOH	days	131.92	136.32	124.09	105.01	116.52	148.43	188.38	181.95	170.61	173.22	178.83	188.35	196.72	200.31	163.34	135.41	137.02	132.19	120.20	115.73

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.77
= 131.92

The days of inventory on hand (DOH) for Masimo Corporation has fluctuated over the past few years. It appears that the company has been able to manage its inventory levels more efficiently in recent quarters compared to previous periods.

In the most recent quarter, as of Dec 31, 2023, the DOH stands at 131.92 days, indicating that Masimo is holding inventory for approximately 132 days on average before it is sold. This is a slight decrease from the Sep 30, 2023 figure of 136.32 days, showing a positive trend in inventory management.

Looking back over the past two years, there was a significant improvement in DOH from the higher levels seen in 2022, where figures exceeded 180 days in some quarters. This improvement suggests that Masimo has successfully implemented inventory control measures to optimize its storage and production processes.

It is worth noting that while the DOH has been trending downwards, Masimo should continue to monitor and fine-tune its inventory management practices to ensure that inventory levels remain in line with demand and that working capital is utilized efficiently. Overall, the recent downward trend in DOH is a positive indicator of improved inventory management efficiency for Masimo Corporation.