MKS Instruments Inc (MKSI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.04	2.83	3.63	3.47	3.37
DOH	days	72.49	128.97	100.44	105.08	108.32

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.04
= 72.49

The days of inventory on hand (DOH) ratio for MKS Instruments Inc has shown fluctuations over the past five years. In 2019, the company had a DOH of 108.32 days, which decreased to 105.08 days in 2020. However, in the subsequent years, the metric increased significantly to 100.44 days in 2021 and then further to 128.97 days in 2022.

The latest data for 2023 indicates an improvement in managing inventory with a DOH of 72.49 days. This reduction suggests the company has been more efficient in turning its inventory into sales, which can lead to cost savings and better liquidity management.

The trend in DOH indicates that the company may have implemented inventory management strategies to optimize its inventory levels, potentially resulting in improved cash flow and profitability. Shorter DOH periods typically reflect better inventory control and potentially indicate a more agile and responsive supply chain that aligns with customer demand. However, it is essential for the company to monitor this ratio continuously to ensure optimal inventory levels and operational efficiency.