Microchip Technology Inc (MCHP)

Days of inventory on hand (DOH)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Inventory turnover		2.01	2.07	2.78	3.10	2.96
DOH	days	182.04	176.44	131.51	117.85	123.16

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.01
= 182.04

The days of inventory on hand (DOH) for Microchip Technology Inc have exhibited a fluctuating trend over the past five years. In the most recent fiscal year ending on March 31, 2024, the company held inventory for an average of 182.04 days, marking an increase compared to the previous year, where the DOH stood at 176.44 days. This rise in DOH may indicate a slower turnover of inventory or potential inefficiencies in inventory management.

Looking back to the fiscal year 2022, Microchip Technology Inc showed a significant decrease in DOH, with the metric standing at 131.51 days. This suggests an improvement in inventory turnover efficiency compared to the prior year. Further back in fiscal year 2021, the DOH was 117.85 days, signaling a slight increase in the time it takes to sell inventory compared to the year before.

In fiscal year 2020, the DOH was 123.16 days, which was higher than the preceding year. This indicates a longer period of time required to convert inventory into sales.

Overall, Microchip Technology Inc's DOH has experienced variability over the five-year period, with some years showing improvements in inventory turnover efficiency while others exhibit higher levels of inventory holding. It is essential for the company to monitor and manage its inventory effectively to optimize its working capital and operational performance.