Motorola Solutions Inc (MSI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		8.22	6.29	7.31	10.65	12.61
DOH	days	44.40	58.06	49.92	34.27	28.95

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.22
= 44.40

Based on the data provided, the Days of Inventory on Hand (DOH) for Motorola Solutions Inc has fluctuated over the past five years.

In 2019, the DOH was at its lowest at 41.24 days, indicating that on average, the company held its inventory for about 41 days before selling it. Subsequently, the DOH increased to 48.72 days in 2020, suggesting a slight increase in the time it took for the company to turn its inventory into sales.

The following year, in 2021, the DOH rose further to 69.62 days, reflecting a significant increase in the time inventory was held before being sold. This trend continued into 2022, with the DOH reaching 78.86 days, the highest level in the period under review.

However, the DOH declined in 2023 to 60.27 days, indicating a reduction in the number of days it took for Motorola Solutions Inc to convert its inventory into sales compared to the previous year.

Overall, the fluctuation in the DOH over the five-year period suggests potential changes in inventory management practices or market conditions impacting the company's inventory turnover efficiency. It is important for Motorola Solutions Inc to monitor and manage its inventory levels effectively to optimize working capital and enhance overall operational performance.