MKS Instruments Inc (MKSI)

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		3.45	3.34	3.40	5.27	4.98	4.95	4.84	2.79	2.81	2.51	3.15	3.35	3.63	3.69	3.69	3.55	3.48	3.38	3.27	3.31
DOH	days	105.86	109.16	107.26	69.19	73.25	73.78	75.40	130.82	130.01	145.50	115.95	108.84	100.44	98.92	98.95	102.69	104.87	107.94	111.68	110.37

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.45
= 105.86

The days of inventory on hand (DOH) for MKS Instruments Inc have shown some volatility over the periods indicated. The company's DOH ranged from a high of 145.50 days on September 30, 2022, to a low of 69.19 days on March 31, 2024. The decreasing trend in DOH from June 30, 2023, to December 31, 2024, suggests that the company managed its inventory levels more efficiently during this period.

A high DOH indicates that the company may be holding excess inventory, which could tie up capital and lead to increased holding costs. On the other hand, a low DOH may suggest inventory shortages or potential difficulties in meeting customer demand.

Overall, it is essential for MKS Instruments Inc to strike a balance in managing its inventory levels to optimize working capital and meet customer demand effectively. Monitoring and analyzing DOH along with other financial ratios can provide insights into the company's inventory management practices and operational efficiency.