Microsoft Corporation (MSFT)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		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	32.93	43.51
DOH	days	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	11.09	8.39

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 64.50
= 5.66

Days of inventory on hand (DOH) is a measure that indicates the average number of days that a company holds its inventory before selling it. A lower DOH value is generally preferable as it suggests that the company can turn its inventory into sales more quickly.

Looking at the data for Microsoft Corporation, the DOH has varied over the past eight quarters. There was a notable decrease in DOH from 24.17 days in September 2022 to 8.56 days in December 2023, indicating a significant improvement in Microsoft's inventory management efficiency.

The trend in DOH for Microsoft Corporation indicates that the company has been able to turn its inventory into sales at a faster pace in recent quarters, which can be a positive sign for its operational efficiency. However, it's important to consider other factors such as industry norms and seasonality when evaluating DOH.