Mercury Systems Inc (MRCY)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.98 | 1.86 | 1.94 | 1.92 | 1.94 | 1.89 | 1.85 | 1.76 | 1.95 | 1.87 | 1.99 | 2.11 | 2.19 | 2.20 | 2.26 | 2.38 | 2.43 | 2.25 | 2.17 | 2.22 | |
| DOH | days | 184.81 | 196.28 | 187.85 | 190.45 | 188.09 | 192.65 | 197.25 | 207.58 | 187.30 | 195.05 | 183.19 | 173.18 | 166.33 | 165.91 | 161.17 | 153.35 | 150.14 | 161.87 | 167.84 | 164.07 |
June 30, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.98
= 184.81
The analysis of Mercury Systems Inc.'s Days of Inventory on Hand (DOH) over the specified period reveals several notable trends and patterns. Initially, as of September 30, 2020, the DOH stood at approximately 164.07 days. Throughout 2020 and into early 2021, there was a gradual increase, culminating in a peak of around 167.84 days at the end of 2020.
During the first quarter of 2021, the DOH decreased slightly to approximately 161.87 days, indicating a modest improvement in inventory turnover. This downward trend continued into the second quarter of 2021, where DOH reached roughly 150.14 days, reflecting a significant reduction in inventory holding periods. However, in subsequent quarters, the DOH experienced fluctuations. It increased again, reaching approximately 161.17 days by the end of December 2021, before moving slightly higher through 2022.
From the beginning of 2022 onward, the DOH demonstrated a persistent upward trend. It rose from around 165.91 days in the first quarter of 2022 to approximately 173.18 days at the end of September 2022, then continued to climb, culminating in a peak of approximately 195.05 days as of March 2023. This increase indicates a lengthening of the average time inventory remains on hand, suggesting possible slower inventory turnover or increased inventory levels relative to sales.
Following this peak, a slight decline ensued in mid-2023, with the DOH decreasing to approximately 187.30 days by the end of June 2023. However, the upward trend resumed, with the DOH reaching about 207.58 days by the end of September 2023—a marked rise compared to earlier periods. The subsequent quarters show a gradual decline, yet the DOH remains elevated relative to pre-2022 levels, ending at approximately 196.28 days in March 2025.
Overall, the observed data indicates that Mercury Systems Inc. has experienced a significant lengthening of its inventory holding period over the analyzed period. The pronounced increase from roughly 164 days in September 2020 to nearly 207.58 days in September 2023 suggests a slowdown in inventory turnover, which could be indicative of factors such as increased inventory accumulation, changes in sales dynamics, supply chain considerations, or shifts in product demand. The fluctuations in the later periods may reflect adjustments in inventory management strategies or market conditions; nonetheless, the longer-term trend points to a higher inventory on-hand relative to sales activity.
Peer comparison
Jun 30, 2025