Microsoft Corporation (MSFT)

Days of inventory on hand (DOH)

		Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Inventory turnover		40.02	24.95	30.34	38.61	32.92
DOH	days	9.12	14.63	12.03	9.45	11.09

June 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 40.02
= 9.12

The Days of Inventory on Hand (DOH) for Microsoft Corporation has shown fluctuations over the past five years. In the most recent fiscal year, ending on June 30, 2023, the DOH was 13.85 days, reflecting a decrease from the previous year. This suggests that Microsoft was able to manage its inventory more efficiently, turning over its inventory at a faster rate.

In comparison to the fiscal year ending in June 2022, where the DOH was 21.80 days, there was a significant improvement in the management of inventory. This decrease indicates that the company may have implemented more effective inventory management strategies, such as optimizing production processes or more accurate demand forecasting.

Looking further back, we observe a fluctuating trend in the DOH from 2019 to 2021, with a decrease in 2020 followed by an increase in 2021. This fluctuation may be attributed to various factors such as changes in sales volume, production capacity, or supply chain disruptions.

Overall, the decreasing trend in Microsoft's DOH implies an improvement in inventory management efficiency over the years, which can positively impact the company's working capital management and ultimately its financial performance. However, a thorough understanding of the company's specific industry dynamics and business model is necessary to fully interpret the implications of these changes in DOH.