Microsoft Corporation (MSFT)

Days of inventory on hand (DOH)

		Sep 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	Dec 31, 2019	Sep 30, 2019
Inventory turnover		68.63	82.95	64.50	34.00	40.33	34.74	33.21	22.49	24.94	27.33	28.71	24.38	30.33	34.78	39.32	27.26	38.61	42.70	37.79	26.16
DOH	days	5.32	4.40	5.66	10.73	9.05	10.51	10.99	16.23	14.63	13.35	12.71	14.97	12.04	10.49	9.28	13.39	9.45	8.55	9.66	13.95

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 68.63
= 5.32

The days of inventory on hand (DOH) for Microsoft Corporation has shown a fluctuating trend over the past several quarters. In the most recent quarter, as of September 30, 2024, the company had 5.32 days of inventory on hand, a slight increase from the previous quarter's 4.40 days. This indicates that Microsoft was able to manage its inventory levels effectively and efficiently.

Looking back over the previous quarters, we see that the DOH has generally improved since the beginning of 2023, when it peaked at 16.23 days. Microsoft has been able to reduce its inventory holding period, implying more efficient inventory management practices.

The downward trend in DOH is a positive sign as it suggests that Microsoft is effectively managing its inventory levels and is turning over its inventory more quickly. Lower DOH indicates that the company is holding less excess inventory and is able to convert its inventory into sales in a timely manner. This can lead to cost savings, improved cash flow, and better overall operational efficiency for Microsoft.

Overall, the trend in Microsoft's days of inventory on hand reflects a sound inventory management strategy, with the company maintaining an optimal balance between holding enough inventory to meet demand and minimizing excess inventory that could tie up capital.